A fully insured pension plan is one in which the plan's assets are invested in which...
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Answer
The correct answer is Option 'C' Fully insured pension plan are those where assets are invested in fully insured insurance contracts.
Fully insured plan is like defined benefit plan BUT returns on these are guaranteed because it requires all the plan assets invested with an insurance company.
The returns, however, can be lower.
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fully insured pension plan is one in which the plan's assets are
invested in which...
A pension plan's ________ represents the time at which rights to assets that have accumulated in...
A pension plan's ________ represents the time at which rights to assets that have accumulated in the employee's pension cannot be taken away. a. insurance component b. vesting schedule c. guaranteed benefit schedule d. none of the above
P19.4 The following information is available for HTM Corporation's defined benefit pension plan: 2020 2021 2022 Defined benefit obligation, opening balance, accounting basis $175,000 ? ? Fair value of plan assets 165,000 ? ? Current service cost
P19.4 The following information is available for HTM Corporation's defined benefit pension plan: 2020 2021 2022 Defined benefit obligation, opening balance, accounting basis $175,000 ? ? Fair value of plan assets 165,000 ? ? Current service cost 35,000 $47,250 $52,500 Discount rate 7% 7% 7% Actual return earned on plan assets 8% 6% 7% Contributions (funding) 44,000 44,000 44,000 Benefits paid to retirees 24,000 26,000 28,000 On January 1, 2020, HTM Corp. amended its pension plan, resulting in past service...
Bob's Burger Buns, Inc. is installing a brand new defined benefit pension plan. Bob is age...
Bob's Burger Buns, Inc. is installing a brand new defined benefit pension plan. Bob is age 55 and will retire at age 65. The next oldest employee is age 35 and will retire in 30 years. Bob has a low risk tolerance. The average tenure of the rank-and-file employees is three years. Examine each of the following portfolios and decide which of the three would be the best choice to fund the plan. Justify your response in terms of the...
P19.3 D'Eon Corporation reports the following January 1, 2020 balances for its defined benefit pension plan, which it accounts for under IFRS: plan assets, $460,000; defined benefit obligation, $460,000. Other data relating to three years of operation of
P19.3 D'Eon Corporation reports the following January 1, 2020 balances for its defined benefit pension plan, which it accounts for under IFRS: plan assets, $460,000; defined benefit obligation, $460,000. Other data relating to three years of operation of the plan are as follows: 2020 2021 2022 Annual service cost $36,800 $ 43,700 $ 59,800 Discount rate 10% 10% 10% Actual return on plan assets 39,100 50,370 55,200 Funding of current service cost 36,800 43,700 59,800 Funding of past service cost...
The interest cost included in the annual pension cost recorded by an employer sponsoring a defined benefit pension plan...
The interest cost included in the annual pension cost recorded by an employer sponsoring a defined benefit pension plan represents the a) difference between the expected and actual return on plan assets. b) increase in the defined benefit obligation due to the passage of time. c) increase in the fair value of plan assets due to the passage of time. d) interest earned on the plan assets for the year. An experience gain or loss (adjustment) is a) additional...
Pension plan calculations. The following information is for the pension plan for the employees of Payne,...
Pension plan calculations. The following information is for the pension plan for the employees of Payne, Inc. 12/31/17 12/31/18 Accumulated benefit obligation $2,800,000 $3,760,000 Projected benefit obligation 3,200,000 4,000,000 Fair value of plan assets 3,230,000 3,630,000 AOCI – Net (gain) or loss (425,000) (480,000) Settlement rate 8% 8% Expected rate of return 7% 6% Payne estimates that the average remaining service life is 15 years. Payne's contribution was $450,000 in 2018 and benefits paid were $260,000. Instructions (a) Calculate the...
Preparing a Pension Work Sheet The following data relate to the defined benefit pension plan of...
Preparing a Pension Work Sheet The following data relate to the defined benefit pension plan of Haan Company Balances at January 1. 2013: PBO $3.500 Prior service cost C $150 Fair value of pension assets $3.000 ABO $2,800 Expected return on plan assets 7% Obligation discount rate 10% Activity for 2013 Service cost $400 Benefit payments to retirees 170 Contributions to pension fund 230 Actual return on plan assets 130 Prior service cost amortization 40 rt Draw Design Layout References...
The following information relates to the contributory, defined pension plan of Klarbrun Inc. Account Balances Projected...
The following information relates to the contributory, defined pension plan of Klarbrun Inc. Account Balances Projected Benefit Obligation.. Plan Assets.. Accumulated OCI—Prior Service Cost... Jan. 1, 2020 $75,000 Cr. 78,750 Dr. 49,500 Dr. . Activity 2020 Service cost ........ $ 49,000 Interest cost 6,000 Prior service cost amortization. 500 Actual return on plan assets (same as expected return) 4.725 Cash funding by company 37,500 Cash funding by plan participants 10,000 Pension benefits paid to retirees 5,000 Net income... 500,000 Required...
P19.12 You are the auditor of Beaton and Gunter Inc., the Canadian subsidiary of a public multinational engineering company that offers a defined benefit pension plan to its eligible employees. Employees are permitted to join the plan after two years of e
P19.12 You are the auditor of Beaton and Gunter Inc., the Canadian subsidiary of a public multinational engineering company that offers a defined benefit pension plan to its eligible employees. Employees are permitted to join the plan after two years of employment, and benefits vest immediately. You have received the following information from the fund trustee for the year ended December 31, 2020: Discount rate 5% Rate of compensation increase 3.5% Defined Benefit Obligation Defined benefit obligation at January 1,...
Projected benefit obligation Fair value of plan assets $2,100,000 $2,340,000 1,680,000 2,460,000 2,550,000 Required: a schedule...
Projected benefit obligation Fair value of plan assets $2,100,000 $2,340,000 1,680,000 2,460,000 2,550,000 Required: a schedule which reflects the n expense Based on the above information about Gibbs Company, prepart of pension amount of net gain or loss to be amortized by the company as a componentin the straight-ine for the years 2010 and 2011. The company amortizes net method over the average service life of participating employees. gains or losses using Circie the correct answer in each of the...
Preparing a Pension Work Sheet The following data relate to the defined benefit pension plan of Haan Company Balances at January 1. 2013: PBO $3.500 Prior service cost C $150 Fair value of pension assets $3.000 ABO $2,800 Expected return on plan assets 7% Obligation discount rate 10% Activity for 2013 Service cost $400 Benefit payments to retirees 170 Contributions to pension fund 230 Actual return on plan assets 130 Prior service cost amortization 40 rt Draw Design Layout References...
The following information relates to the contributory, defined pension plan of Klarbrun Inc. Account Balances Projected Benefit Obligation.. Plan Assets.. Accumulated OCI—Prior Service Cost... Jan. 1, 2020 $75,000 Cr. 78,750 Dr. 49,500 Dr. . Activity 2020 Service cost ........ $ 49,000 Interest cost 6,000 Prior service cost amortization. 500 Actual return on plan assets (same as expected return) 4.725 Cash funding by company 37,500 Cash funding by plan participants 10,000 Pension benefits paid to retirees 5,000 Net income... 500,000 Required...
Projected benefit obligation Fair value of plan assets $2,100,000 $2,340,000 1,680,000 2,460,000 2,550,000 Required: a schedule which reflects the n expense Based on the above information about Gibbs Company, prepart of pension amount of net gain or loss to be amortized by the company as a componentin the straight-ine for the years 2010 and 2011. The company amortizes net method over the average service life of participating employees. gains or losses using Circie the correct answer in each of the...
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