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
Homework Answers
Actuary is business professional who deals with the measurement and management of risks and uncertainties. They are qualified professionals to measure the risk and manage it.
Here , Traditional Defined Benefit Pension Plan requires an actuary only at plan inception. So answer is option d.
Add Answer to:
Which of the following plans requires an actuary only at plan
inception?
a. Money Purchase Pension...
Brown Industries operates a defined benefit pension plan. Information received from the actuary and the trustee...
Brown Industries operates a defined benefit pension plan. Information received from the actuary and the trustee related to the Year 2 pension plan includes the following Projected benefit obligation, January 1, Year 2 Service cost Interest cost Retirement benefits paid Employer contribution Actual return on plan assets Amortization of prior service cost Amortization of prior-year net pension loss Fair value - - pension plan assets, December 31, Year 1 $1,889,000 105,000 190,000 182,000 155,000 215,000 122,000 37,000 1,825,000 Brown's Year...
Exercise 20-13 Wildhorse Company sponsors a defined benefit pension plan. The corporation's actuary provides the following...
Exercise 20-13 Wildhorse Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 $1,560 2,010 2,260 1,540 Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2017 Contributions (funding in 2017) Benefits paid in 2017 December 31, 2017 $2,010 2,820 3,630 2,560 10 % 720 400 730 200 (a) Compute the actual...
Bonita Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about...
Bonita Company sponsors a defined benefit pension plan. The
corporation’s actuary provides the following information about the
plan.
January 1,
2017
December
31, 2017
Vested benefit
obligation
$1,390
$1,750
Accumulated benefit
obligation
1,750
2,850
Projected benefit
obligation
2,350
3,540
Plan assets (fair value)
1,820
2,550
Settlement rate and expected
rate of return
10
%
Pension asset/liability
530
?
Service cost for the year
2017
440
Contributions (funding in
2017)
720
Benefits paid in 2017
220
(a) Compute the actual return...
Kingbird Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 $1,400 2,080 2,420 1,610 December 31, 2017 $...
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Tommy Inc. sponsors a defined-benefit pension plan. The corporation's actuary provides the following information about the...
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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...
Term Answer Description ERISA A. This pension plan meets specified criteria established by the Internal Revenue Code. V...
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Chapter 8 - Question 8 : Help me to explain this question. Thank you Which of...
Chapter 8 - Question 8 : Help me to explain this question. Thank you Which of the following qualified plans require mandatory funding? 1. Defined benefit pension plans. 2. 401(k) plans with an employer match organized as a profit-sharing plan. 3. Cash balance pension plans. 4. Money purchase pension plans.
Van Persie Corp, sponsors a defined benefit pension plan for its employees. The following balances related...
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#4 Velasquez Company has available the following information about its defined-benefit pension plan for the year...
#4 Velasquez Company has available the following information about its defined-benefit pension plan for the year ending December 31, 2018: Service cost for 2018 Accumulated benefit obligation Plan assets at fair value Accumulated OCI (PSC) Vested benefit obligation Market-related asset value Projected benefit obligation Accumulated OCI net gain Interest on projected benefit obligation $ 45,000 683,000 630,000 300,000 505,000 725,000 865,000 90,000 64,000 Instructions (a) Calculate the pension asset / liability to be recorded at December 31, 2018. (b) Calculate...
Brown Industries operates a defined benefit pension plan. Information received from the actuary and the trustee related to the Year 2 pension plan includes the following Projected benefit obligation, January 1, Year 2 Service cost Interest cost Retirement benefits paid Employer contribution Actual return on plan assets Amortization of prior service cost Amortization of prior-year net pension loss Fair value - - pension plan assets, December 31, Year 1 $1,889,000 105,000 190,000 182,000 155,000 215,000 122,000 37,000 1,825,000 Brown's Year...
Exercise 20-13 Wildhorse Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 $1,560 2,010 2,260 1,540 Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2017 Contributions (funding in 2017) Benefits paid in 2017 December 31, 2017 $2,010 2,820 3,630 2,560 10 % 720 400 730 200 (a) Compute the actual...
Bonita Company sponsors a defined benefit pension plan. The
corporation’s actuary provides the following information about the
plan.
January 1,
2017
December
31, 2017
Vested benefit
obligation
$1,390
$1,750
Accumulated benefit
obligation
1,750
2,850
Projected benefit
obligation
2,350
3,540
Plan assets (fair value)
1,820
2,550
Settlement rate and expected
rate of return
10
%
Pension asset/liability
530
?
Service cost for the year
2017
440
Contributions (funding in
2017)
720
Benefits paid in 2017
220
(a) Compute the actual return...
Kingbird Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 $1,400 2,080 2,420 1,610 December 31, 2017 $2,080 2,970 3,550 2,520 Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for Contributions (funding in 2017) Benefits paid in 2017 10% 810 the year 2017 410 650 190 (a) Compute the actual return on the...
Tommy Inc. sponsors a defined-benefit pension plan. The corporation's actuary provides the following information about the plan. 1-Jan-2019 31-Dec-2019 Projected benefit obligation 810,000 Plan assets 740,000 Accumulated OCI (PSC)-Dr. 312,000 ? Accumulated OCI (G/L)-Dr. 120,000 Settlement & expected return rate 896 Service cost 155,000 Contributions (funding) 200,500 Actual return on plan assets 54,400 Benefits paid to retirees 180,000 Average service life of all covered employees in years 10 Notes: Read carefully and follow strictly so that Bb can grade you...
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...
Van Persie Corp, sponsors a defined benefit pension plan for its employees. The following balances related to the plan exist on December 31, 2016. Plan assets (market value) Projected benefit obligation Pension asset/liability $450,000 600,000 150,000 Cr. Van Persie amends the pension plan, effective 1/1/2017, and the actuary informs Van Persie that the Prior Service Cost associated with the amendment equals $90,000 As a result of the operation of the plan during 2017, the actuary provided the following additional data...
#4 Velasquez Company has available the following information about its defined-benefit pension plan for the year ending December 31, 2018: Service cost for 2018 Accumulated benefit obligation Plan assets at fair value Accumulated OCI (PSC) Vested benefit obligation Market-related asset value Projected benefit obligation Accumulated OCI net gain Interest on projected benefit obligation $ 45,000 683,000 630,000 300,000 505,000 725,000 865,000 90,000 64,000 Instructions (a) Calculate the pension asset / liability to be recorded at December 31, 2018. (b) Calculate...
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