Question: 1. if pension plan assets (inside the trust) are LESS than the projected benefit obligation the pension plan is said to be ----------- funded. 2.

1. if pension plan assets (inside the trust) are LESS than the projected benefit obligation the pension plan is said to be ----------- funded.

2. using the information below calculate the present value of the retirement benefits (projected benefits obligation) as of the end of the current year.

FACTS:

The company has a defined benefit plan

Cindy's salary at the end of 2019 (current year) - $165,000

Retirement expected after- 41 years of service

Retirement period is expected to be - 20 years

Interest rate is 2.0%

Benefits are calculated as a formula as the product of:

service already provided - 11 years

percentage - 2.0%

Final year's salary is projected to be - 318,000

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