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Notes_on_computations

# Notes_on_computations - FSA3607 Accounting Specifics For...

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Page | 1 FSA3607 – Accounting Specifics For Postretirement Benefits Slide 26 NOTES ON COMPUTATIONS 1. Pension per year, 962 \$ 5 52 000 , 10 \$ = × one week’s compensation at the time of retirement multiply by the number of years worked under the plan. 2. The PV of the pension @ December 31, 2025, date of retirement is: 753 , 6 \$ 07 . 0 ) 07 . 0 1 ( 1 962 \$ 10 = + - × - . Ten years life expectancy, discount rate 7%. 3. The PV of the pension @ December 31, 2005, date of the balance sheet (today) is: 745 , 1 \$ ) 07 . 1 ( 753 , 6 \$ 20 = × - 4. The projected salary and the date of retirement is: 911 , 21 \$ ) 04 . 1 ( 000 , 10 \$ 20 = × , if we suppose a 4% increase in salary per year. 5. The projected pension per year, one week compensation, 2005 formula: 107 , 2 \$ 5 52 911 , 21 \$ = × 6. The PV of the corresponding projected pension @ December 31, 2025, date of retirement is: 798 , 14 \$ 07 . 0 ) 07 . 0 1 107 , 2 \$ 10 = + - × - 7. The PV of the corresponding projected pension @ December 31, 2005, date of the balance sheet (today) is: 824 , 3 \$ ) 07 . 1 ( 798 , 17 \$ 20 = × - 8. Same as 7. above, but computed 1 year later. 091 , 4 \$ ) 07 . 1 ( 824 , 3 \$ 1 = × 9. Pension per year in 2006, based on a six year-service: 528 , 2 \$ 6 52 911 , 21 \$ = × 10. Corresponding PV: 757 , 17 \$ 07 . 0 ) 07 . 0 1 ( 1 528 , 2 \$ 10 = + - × - 11. Corresponding PBO end of 2006:
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