Post retirement benefits- Instructor notes Combined Notes

Post retirement benefits- Instructor notes Combined Notes -...

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Post retirement benefits- notes September 13, 2011 General Motors story page 172 Slide on three parties Actuarial Two types of benefits: Defined contribution Defined benefits Slide on funding Charles Retirement CFO desire for steady earnings. No disclosure Footnote only Least impact on earnings Least fluctuation in earnings Least Recorded liab. FMV accounting issues Components of pension costs in perfect world Recurring 1. Service cost 2. Interest cost 3. Expected return on assets Changes in assumptions and economics Variable (Economic changes) 1. Actual return on assets different 2. Prior service cost (additional benefits) 3. Actuarial gain / losses (Change in assumptions) September 15, 2011 Expense to be recorded over employees’ activity service. Actuarial assumptionsPage 156 Life expectancy Employee turnover Compensation growth Healthcare cost Expected rates of return Interest rates Funding considerationPage 164 Minimum requirements (ERISA)
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Post retirement benefits- Instructor notes Combined Notes -...

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