A. For each benefit, flag whether you think CT is breaking the law, and calculate the cost of each benefit assuming that CT makes the minimum adjustments necessary to ensure that it complies with the law.

Include cash compensation in your table, so that the total of the table is the total cost of compensation of employees at CT.

B. how much less will the employee have in their account if they pay annual fees that reduce their annual rate of return by 1 percentage point (i.e., from 8 percent per year to 7 percent per year). Show these amounts for the end of 10, 20, 30, and 40 years.

company deducts 6.2% from all employee salaries (up to $100,000) for contributions to OASDI for each employee.

company deducts 1.45% from all employee salaries (up to $90,000) for contributions to OASDI for each employee.

company makes no contributions to unemployment insurance & purchases workers' comp insurance from a private provider. Coverage has not been reviewed in many years & the CEO's believe that they are paying 2.5% of payroll for this insurance. The CEO's cannot recall ever having made a claim.

A non-contributory defined benefit (DB) plan is offered to all employees, after a 3-year minimum service requirement. The plan provides a retirement benefit of 1% of an employee's highest salary for every year worked at CT. The plan does not pay COLA's. The plan has a minimum age requirement of 16. The plan uses a 9-year-cliff vesting schedule. The maximum number of years an employee can earn is 40. Up to now, no call center employee has ever vested in the DB plan. The plan actuary has priced the plan using the Entry Age method, with an assumed entry age of 30, a retirement age of 62, no mortality or termination between entry and retirement, and a discount rate of 10% p.a. both pre- and post-retirement. Salary growth is assumed to be 2% p.a. and the actuary uses US national mortality tables from the Social Security Administration to price the plan.

company provides a wellness program that also covers $10 toward per month toward the cost of a health/fitness club membership for all employees. company also provides a doggy play area for employees who wish to bring their dogs to work. A vet attends the doggy play area once a week, paid for by company. There is no charge for using the doggy play area.