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Unformatted text preview: et-liability method. Insight into Accounting for retirement
benefits begins with understanding how
the benefits work from an employees’
Defined Contribution Plans and
Defined “Benefit” Plans
18-16 What are typical arrangement under
defined contribution retirement plans?
defined This means that the university will make a total 10% contribution if
you make a 5% employee contribution
18-17 The USC Retirement Savings Program makes matching USC
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
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?
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:
Fidelity Investments plan.fidelity.com/usc.rsp
plan.fidelity.com/usc.rsp Prudential Retirement www.uscpru.com
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
for income in retirement?
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
POSTRETIREMENT Intermediate Accounting
Kieso, Weygandt, and Warfield
18-20 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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