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04-18-12 Class26 Ch 20 Pensions

Defined this means that the university will make a

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Unformatted text preview: et-liability method. Insight into Accounting for retirement Insight benefits begins with understanding how the benefits work from an employees’ perspective Two types: Two Defined Contribution Plans and Defined Defined “Benefit” Plans Defined Chapter 18-16 What are typical arrangement under defined contribution retirement plans? defined This means that the university will make a total 10% contribution if This you make a 5% employee contribution you Chapter 18-17 The USC Retirement Savings Program makes matching USC The contributions that equal 100% of your matched pre-tax or Roth employee contributions that do not exceed 5% of your eligible earnings. The university also makes a 5% non-elective contribution whether or not you contribute. Who's eligible? After completing six months of employment in which you have After worked at least 500 hours, you are eligible if you are: worked A faculty member faculty A staff member staff At least 21 years of age At What are typical retirement benefits? What Contributions Contributions are invested by your choice of companies selected by the university to manage the investment of the retirement plan contributions. Each company offers a wide variety of investment options: wide Fidelity Fidelity Investments plan.fidelity.com/usc.rsp plan.fidelity.com/usc.rsp Prudential Retirement www.uscpru.com Prudential www.uscpru.com TIAA-CREF www.tiaa-cref.org TIAA-CREF www.tiaa-cref.org Vanguard www.vanguard-education.com/usc Vanguard www.vanguard-education.com/usc Chapter 18-18 How much money is needed to provide How for income in retirement? for CNN Money http://cgi.money.cnn.com/tools/retirementneed/retirementneed_plain.html Retire Chapter 18-19 Early Homepage http://www.retireearlyhomepage.com/re60.html CHAPTER 20 20 ACCOUNTING FOR PENSIONS AND ACCOUNTING POSTRETIREMENT BENEFITS POSTRETIREMENT Intermediate Accounting 13th Edition Kieso, Weygandt, and Warfield Chapter 18-20 Learning Objectives Learning Objectives 1. Distinguish between accounting for the employer’s pension plan and accounting for the pension fund. 2. Identify types of pension plans and their characteristics. 3. Explain alternative measu...
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