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Old 10-08-2010, 06:36 PM
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Oreo Oreo is offline
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Question EOM 3 Task 1 - CPP Covered Earnings

Why, in the [Calc] tab, does the max CPP Covered Earnings in Current Year (column F) grow by AnnIncCPPCovEarningsRate = inflation rate + 0.5% for ages below 55? Where does it say we should assume average incomes should increase by inflation + 0.5%? If that were the case then column G should also increase by this amount as well. Is this something I should be changing?
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Old 10-09-2010, 07:18 PM
CCLi CCLi is offline
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ya..i think we have to change the maximum pension earnings rate to the same thing too...
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Old 10-13-2010, 01:49 PM
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It says so on page 3, 2nd last paragraph under "About Casadia,... (continued)."
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Old 10-19-2010, 11:03 PM
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That paragraph gives a different rate for ages: <50, [50, 60), and [60, 65]. Also, I interpreted this paragraph to be in regards to the Chocolate Factory employees only, not all of Casadonia. I would assume that the average Casadonian salary should only increase by inflation, like the private pensionable earnings limit increase suggests in the [Calc] tab. Thoughts anyone?
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Old 10-25-2010, 03:20 PM
MuhlGoZoom MuhlGoZoom is offline
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It looks like Pensionable Earnings is correct (although that doesn't seem to be a point of discussion).

I'm also going to guess CPP Covered Earnings are correct. While the 4.0% increase only shows up in the appendix, nowhere else in the project does it say what we should assume for the average Cascadian annual salary increase (besides no more than inflation after age 55), so I'm incined to believe 4.0% is the average Cascadian increase.

I think the Maximum earnings are incorrect. It says "private pension plans must limit pensionable earnings to no more than four times the Cascadian average income." based on my logic above, Cascadian average income increases 4% per year. So, Maximum earnins should also increase 4% per year, regardless of age, since this is only based on Cascadian average income, not the individual comapny's increase structure.

How off base do you think this is?
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Old 12-25-2010, 01:42 AM
Jengo Jengo is offline
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I know this topic is two months late now but I want to mention that yes, maximum earnings do increase over time. In 2006 the maximum is $200,000... but if you look at the calcs tab Column G you will see the maximum increasing by the year.
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Old 10-10-2012, 10:40 PM
a3yang a3yang is offline
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That is because the "calcs" tab, column G links to C24 in "input".
Basically, maximum earnings increase by whatever you put in that cell, that does not mean the input should be assumed correct.

Quote:
Originally Posted by Jengo View Post
I know this topic is two months late now but I want to mention that yes, maximum earnings do increase over time. In 2006 the maximum is $200,000... but if you look at the calcs tab Column G you will see the maximum increasing by the year.
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Old 01-14-2013, 12:17 AM
dabears32 dabears32 is offline
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So what was the consensus here?
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Old 02-14-2013, 11:40 AM
ActuaryStudMuffin ActuaryStudMuffin is offline
 
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Bump...Any update on the consensus?
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