Question: I need help with this homework question please. l. {9 points) A company designs a dened benefit pension plan. You are given: (9 Retirement benefit

I need help with this homework question please.

I need help with this homework question please.
l. {9 points) A company designs a dened benefit pension plan. You are given: (9 Retirement benefit is a whole life annuity immediate at 65 with annual payments of 4% of career average salary for each year of service. (ii) Early retirement is allowed starting at age 62 and assume to occur in the middle of the year of age. The benefit is reduced by 6% for each year before age 65, prorate for fractional years. (iii) The retirement rate at ages 62 through 64 is \"log? = 0.04 for k = 0.1,2. (iv) The multiple decrement death rate at ages 52 through 64 is kuq'? = 0.01 for k = 0,1,2. (v) Deaths occur uniformly throughout the year and there is no death benefit. (vi) Annual effective interest rate is 0.05. (vii) Death and retirement are the only decrements. (viii) Salary scale is S; = 1.03" and salary is increased each year at birthday. (IX) \"62.5 = 11. \"63.5 = 10.6, 11545 = 10.2, (.155 = 10 Consider a member aged 62 has a current salary of 100,000 and cumulative salary up to but excluding age 62 of 1500.000. (a) (3 points) Calculate the acturial present value of the normal retirement (age 65) benefit. (b) (4 points) Calculate the acturial present value of the early retirement benefit. (c) (2 points) Calculate the acturial liability under TUC method to the nearest 1000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!