SOA_FAP_Mod3Exercise01-02CareerProjections.xls - Society of...

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Society of Actuaries Module 3 Exercise - Chocolate Factory Defined Benefit Plan vs Defined Contribution Plan Input Fields Calculated Fields Worksheet Member Data Defaults External Forces Age (enter integral age): 30 30 Average Wage: Sex (enter "M" or "F"): F M CPP Covered Earnings: Current Year ("YYYY"): 2006 2006 Maximum Pension Earnings: Prior Year Earnings: $200,000 $65,000 Past Service (enter years): 0 0 Initial Account Balance: $0 $0 Projection Parameters Defined Benefit Accrual Rate - Fund Return: 6.50% 6.50% up to covered earnings Inflation Rate: 3.50% 3.50% in excess of covered earnings Annual Increase in: Defined Contribution Rate - Pensionable Earnings:* 4.50% up to covered earnings CPP Covered Earnings:** 4.00% in excess of covered earnings Maximum Pension Earnings: 3.50% * Earnings rates from age 50 to age 60 are 0.50% less per annum and from age 60 to age 65 are 1.0% le ** Individual CPP covered earnings increases are limited to the increase in inflation after age 55 Prior Year Age Sex Earnings 50 M 400,000.00 45 M 250,000.00 40 M 125,000.00 35 F 65,000.00 20 F 25,000.00 30 F 65,000.00 60 M 40,000.00 30 M 40,000.00 20 F 35,000.00 20 M 35,000.00
Worksheet Defaults Variable Names $50,000 $50,000 100,000 Age =Input!$C$10 $200,000 Sex =Input!$C$11 Year =Input!$C$12 PriorYrEarnings =Input!$C$13 PastSvYears =Input!$C$14 IAB =Input!$C$15 FROR =Input!$C$18 1.30% 1.30% InflRate =Input!$C$19 1.75% 1.75% AnnIncPenEaringsRate =Input!$C$22 AnnIncCPPCovEarningsRate =Input!$C$23 AnnIncMaxPenEarningsRate =Input!$C$24 12.00% 12.00% AvgWage =Input!$G$10 17.00% 17.00% CPP_Covered_Earnings =Input!$G$11 Maximum_Pension_Earnings =Input!$G$12 dbaccrualrate1 =Input!$G$18 dbaccrualrate2 =Input!$G$19 dccontnrate1 =Input!$G$22 dccontrate2 =Input!$G$23 ess per annum Past Service in Years 20 20 20 10 1 8 2 3 1 1
Society of Actuaries Module 3 Exercise - Chocolate Factory Results Calculated Fields Member Data Replacement Ratios at 65 Age: 30 Private Defined Benefit 51% Sex: F Total Defined Benefit 64% Current Year: 2006 Prior Year Earnings: $200,000 Private Defined Contribution 56% Past Service: 0 Total Defined Contribution 69% Initial Account Balance: 0 Projection Parameters

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