Service years x Final year's salary. Carol was hired by Perry at the beginning of Clark is expected to retire at the end
of after years of service. Her retirement is expected to span years. At the end of years after being
hired, her salary is $ The company's actuary projects Clark's salary to be $ at retirement. The actuary's
discount rate is
Percentage of final year's salary
Total years of service
Service years through December
Clark's salary at December
Retirement is expected to span
Clark's projected salary at retirement
Actuary's discount rate
Required:
Estimate the amount of Carol's annual retirement payments for the retirement years earned as of the
end of
Suppose Perry's pension plan permits a lumpsum payment at retirement in lieu of annuity payments.
Determine the lumpsum equivalent as the present value as of the earned retirement annuity at the
expected date of retirement the end of
What is the company's projected benefit obligation at the end of with respect to Carol?
Graded Worksheet
