Which age group generally benefits the most from the establishment of a cash balance pension plan?...
Which age group generally benefits the most from the establishment of a cash balance pension plan? Which age group generally benefits the most from the establishment of a defined benefit pension plan?
Homework Answers
A cash balance pension plan have option of a lifetime annuity, the higher the amount more will be benefits . So at age of 60 and older employee can save well over $200,000 annually in pretax contributions compared. the best age is 60 and above
A defined-benefit retirement plan is an employer-sponsored pension plan, where retirement fund is contributed by employer. The benefit or return in such retirement scheme depend on length of employment as well as salary history. Generally employee prefer to take pension at age of 65 years. at age 50 and above they can save up to $57000 annually.
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Which age group generally benefits the most from the
establishment of a cash balance pension plan?...
Which type of pension plan is required to pay out a certain sum, generally based on...
Which type of pension plan is required to pay out a certain sum, generally based on a percentage of salary upon retirement and the number of years of service? Multiple Choice Defined Contribution. Contributory. Defined Benefit. Noncontributory.
Which of the following plans requires an actuary only at plan inception? a. Money Purchase Pension...
Which of the following plans requires an actuary only at plan inception? a. Money Purchase Pension Plan b. Cash Balance Plan c. Target Benefit Plan d. Traditional Defined Benefit Pension Plan
Blount Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned...
Blount Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $30,000 for the period. The pension plan requires a contribution to the plan administrator equal to 10% of employee salaries. Salaries were $400,000 during the period.Provide the journal entry for the (a) vacation pay and (b) pension benefit.Hobson Equipment Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $20,000 for the period. The...
Stone Corporation has a defined benefit pension plan. One of its employees has vested benefits under...
Stone Corporation has a defined benefit pension plan. One of its employees has vested benefits under the plan, which will pay her $30,000 annually for life starting with the first $30,000 payment on the day she retires at the age of 65. The employee has just reached the age of 45. Stone consulted standard mortality tables to come up with a life expectancy of 80 for this employee. The implicit interest rate under the plan is 9%. Required: To fulfill...
Vacation Pay and Pension Benefits Putnam Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $40,700 for the period. The pen...
Vacation Pay and Pension Benefits Putnam Company provides its employees with vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $40,700 for the period. The pension plan requires a contribution to the plan administrator equal to 9% of employee salaries. Salaries were $435,000 during the period, and the full amount due was contributed to the pension plan administrator. Required: (a) Provide the journal entry for the vacation pay. (b) Provide the journal entry for the pension...
Term Answer Description ERISA A. This pension plan meets specified criteria established by the Internal Revenue Code. V...
Term Answer Description ERISA A. This pension plan meets specified criteria established by the Internal Revenue Code. Vested rights B. The employee bears part of the contribution cost in this pension plan. c. Noncontributory pension plan Based on a formula, it computes the benefits, not contributions, to be paid out. Contributory pension plan D. Under this plan, the employer not only makes the contributions (based on a percentage of an employee's salary), controls the investment, and guarantees a given payout...
The following data relates to CheeseFactory Inc's pension plan for the year 2020: Defined benefit obligation...
The following data relates to CheeseFactory Inc's pension plan for the year 2020: Defined benefit obligation at January 1, 2020 - $627,000 Fair value of plan assets at January 1, 2020 - $600,000 Current service cost - $82,000 Cost of past service benefits granted effective December 31, 2020 - $34,000 Actual return on plan assets - $70,000 Contributions to plan - $87,000 Benefits paid - $ 45,000 Actuarial loss - $39,000 Interest (discount) rate - 8% Instructions: (a) Prepare a...
Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year: Projected benefit obligation Balance, January 1 $ 159,000,000 Service cost 29,500,000 Interest cost 15,900,000 Benefits pa
Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year:Projected benefit obligationBalance, January 1$ 159,000,000Service cost29,500,000Interest cost15,900,000Benefits paid(16,500,000)Balance, December 31$ 187,900,000Plan assetsBalance, January 1$ 94,500,000Actual return on plan assets11,450,000Contribution27,500,000Benefits paid(16,500,000)Balance, December 31$ 116,950,000The expected long-term return on plan assets is 10%. There were no other relevant data for the year.Required:Determine Burrito's pension expense for the year.Prepare the journal entries to record the pension expense and funding for the year.
A company's defined benefit pension plan had a PBO of $265,000 on January 1, 2009. During 2009, pension benefits paid we...
A company's defined benefit pension plan had a PBO of $265,000 on January 1, 2009. During 2009, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2009 was $80,000. Plan assets (fair value) increased during the year by $45,000. The amount of the PBO at December 31, 2009, was
Preparing Pension Entries and Pension Worksheet Rollo Company has a defined benefit pension plan. At the...
Preparing Pension Entries and Pension Worksheet Rollo Company has a defined benefit pension plan. At the end of the current reporting period, December 31, 2020, the following information was available: Projected benefit obligation Balance, Jan. 1, 2020 $300,000 Service cost 80,000 Interest cost ($150,000 x 10% discount rate) 30,000 Change in actuarial assumptions on Dec. 31, 2020 (800) Pension benefits paid (84,000) Balance, Dec. 31, 2020 $325,200 Accumulated benefit obligation $240,000 Vested benefit obligation $80,000 Plan assets Balance, Jan. 1,...
Stone Corporation has a defined benefit pension plan. One of its employees has vested benefits under the plan, which will pay her $30,000 annually for life starting with the first $30,000 payment on the day she retires at the age of 65. The employee has just reached the age of 45. Stone consulted standard mortality tables to come up with a life expectancy of 80 for this employee. The implicit interest rate under the plan is 9%. Required: To fulfill...
Term Answer Description ERISA A. This pension plan meets specified criteria established by the Internal Revenue Code. Vested rights B. The employee bears part of the contribution cost in this pension plan. c. Noncontributory pension plan Based on a formula, it computes the benefits, not contributions, to be paid out. Contributory pension plan D. Under this plan, the employer not only makes the contributions (based on a percentage of an employee's salary), controls the investment, and guarantees a given payout...
The following data relates to CheeseFactory Inc's pension plan for the year 2020: Defined benefit obligation at January 1, 2020 - $627,000 Fair value of plan assets at January 1, 2020 - $600,000 Current service cost - $82,000 Cost of past service benefits granted effective December 31, 2020 - $34,000 Actual return on plan assets - $70,000 Contributions to plan - $87,000 Benefits paid - $ 45,000 Actuarial loss - $39,000 Interest (discount) rate - 8% Instructions: (a) Prepare a...
Preparing Pension Entries and Pension Worksheet Rollo Company has a defined benefit pension plan. At the end of the current reporting period, December 31, 2020, the following information was available: Projected benefit obligation Balance, Jan. 1, 2020 $300,000 Service cost 80,000 Interest cost ($150,000 x 10% discount rate) 30,000 Change in actuarial assumptions on Dec. 31, 2020 (800) Pension benefits paid (84,000) Balance, Dec. 31, 2020 $325,200 Accumulated benefit obligation $240,000 Vested benefit obligation $80,000 Plan assets Balance, Jan. 1,...
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