Question

Question 11 pts

In Melvin's defined benefit plan, the actuary noted that life expectancy for retirees of Melvin's defined benefit plan is increasing at an above average rate for the fifth year in a row. The impact on plan costs of this trend would be to lower plan costs. T/F?

True

False

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Question 21 pts

Shurfine, Inc. has a defined pension plan for the benefit of its employees. Over the last five years, the assets of the plan have regularly beat the performance of the S&P 500 and the investment advisor for the funds has presented a model of future returns for the plan that should increase asset returns from current assumption of 6.5% to 8%.

What are the implications to the costs of the plan if expected investment returns are projected to increase in the future?

The costs of the plan would not be affected

The costs of the plan will decrease

Not enough information given to answer the question.

The costs of the plan will increase

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Question 31 pts

Defined benefit pension plans may permit in-service withdrawals by participants who are 62 or older.

True

False

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Question 41 pts

Actuaries considered many factors in advising a defined pension sponsor regarding required returns.   Some of these factors include mortality, disability, and salary increases. T/F?

True

False

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Question 51 pts

Lydia, earned $425,000 in 2018, her last year of employment at Starr Inc., and her highest salary at Starr. She had completed a 30 year career at her employer. She participated in the firm's defined benefit plan which provides a retirement benefit equal to 1.25% times years of service times highest salary. What was her retirement benefit in 2018 based on the statistics of her career?

$123,750

$159,375

$275,000

$220,000

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Question 61 pts

The Department of Labor permits disparity of contributions or benefits to employees of a qualified retirement plan that provides higher contributions to employees whose compensation is in excess of $128,400 in 2018. T/F?

True

False

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Question 71 pts

NiTec Motors has 200 non-excludable employees, 20 of whom are highly compensated. Sixteen of the 20 highly compensated and 140 of the 200 non-highly compensated employees are covered by NiTec Motors' qualified plan. The average accrued benefit for the highly compensated is 4% and the average accrued benefit for the non-highly compensated is 2%. Which of the following statements is true regarding coverage?

1. The plan passes the ratio percentage test.

2. The plan passes the average benefits test.

Neither 1 nor 2

1 only

Both 1 and 2

2 only

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Question 81 pts

The company sponsors a defined contribution plan. Sylvia, age 48, has compensation of $170,000 for the year. Her company made a $20,000 contribution on Sylvia's behalf and there were $10,000 plan forfeitures allocated to Sylvia's profit sharing plan during the year.   How much can Sylvia defer into her CODA plan (401 k) to maximize her annual contributions to the plan for 2018?

$18,500

$24,500

$29,000

$25,000

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Question 91 pts

Robert has a qualified plan with an account balance of $1,300,000.   In which of the following circumstances would a third party be able to alienate the assets within Robert's qualified plan?

1. A QDRO in favor of a former spouse

2. A Federal tax levy.

3. Creditors in a personal bankruptcy.

3 only

1, 2, and 3

1 and 2

1 and 2

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Question 101 pts

Yu earns $325,000 per year at her company where she has been employed for 12 years. Her company sponsors a defined benefit plan that provides employees with a benefit equal to 1.8% per years of of the employee's final compensation. At this time, what is Yu retirement benefit payable from the defined benefit plan?

$70,200

$59,400

$220,000

$164,760

Answer 1

que.11-the given statement is true

que.21-no enogh info is given

que-31-the given statement is true

que-41-the given statement is true

que -51-correct answer is $159375i.e,$425000*30*1.25%=$159,375

que.61-false in place of $128,400,it shgould be $115,000

que.71-plan passes neither 1 nor 2 test

que.81-$25000 is the correct answer for this

que.91- answer si all i.e,1,2, &3and third party can alene the aasets of robnert in all of the following circumstances

q.101

yu retirement benefit payable from the defined benefit plan=(325000*12)*1.8%=$70200