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Old 10-11-2010, 03:31 PM
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Question EOM 3 Task 5 Account Balances

Should we be assuming an initial account balance of zero for all employees?
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Old 10-11-2010, 05:49 PM
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If they don't say otherwise, then I would assume that it's zero.
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Old 11-05-2010, 08:48 AM
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Were you able to get anywhere near the pension target for the President assuming a 0$ initial account balance under a DC formula? Hes too close to retirement I think
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Old 11-05-2010, 12:58 PM
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You are right. Even if you give him the max 15%/15% DC you will not make it to 70% funded. I think you just have to note that and try to have some other ideas for him.

FYI, I haven't turned this assignment in yet.
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Old 11-05-2010, 03:45 PM
ActuarialBAMF ActuarialBAMF is offline
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Yeah, this one has been a real P.I.T.A so far! I think the 70% pension target is for a career employee when I re read the assignment today. I'm probably going to note who the problem wasn't properly defined and come up with some alternatives for this person
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Old 11-05-2010, 03:45 PM
ActuarialBAMF ActuarialBAMF is offline
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Any ideas for alternatives? I guess we could really come up with anything legal and suggest that
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