What would the the comuted value of the defined benefit pension plan be in the following example? Frank is leaving his job and pension at age 65 and has 33 years in the defined benefit pension plan which provides 2% per year of service based on the average best five years of income. His best average five years earnings were $75,000. The pension plan assumes life expectancy is age 92 and the rate of return of 1.1%.

What would the the comuted value of the defined benefit pension plan be in the following example? Frank is leaving his job and pension at age 65 and has 33 years in the defined benefit pension plan which provides 2% per year of service based on the average best five years of income. His best average five years earnings were $75,000. The pension plan assumes life expectancy is age 92 and the rate of return of 1.1%.

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter4: Income Tax Withholding

Section: Chapter Questions

Problem 7QR

See similar textbooks

Similar questions

A man has just taken retirement at age 50. He will receive 5,000 monthly in retirement benefits until heturns 60 and begins receiving Social Security benefits at which time the pension declines to only 3,000 permonth for 5 years. What is the present value of his pension if he uses a rate of 7%?
Mr. X to retire at age 65 and believes that he can live comfortably with an annual pension of $76,000, to be withdrawn at the beginning of each year in his retirement. Suppose his pension account will generate 9% of annual interest rate, and suppose Mr.X believes tgat he will live to 100. In order to have sufficient money for his retirement , what is the minimum amount that Mr. X must have saved up in his pension account at the time of his retirement at of 65?
Assuming you are considering investing in a defined contribution pension plan. You do not know how many you need to invest into the plan. Please calculate the value of the plan when you retire at 70-years-old. the interest rate or investment return is 10%. You invest 23,500 each year from 20-years-old. You invest 23,500 each year from 25-years-old. You invest 5,000 each year from 20-years-old.
Oscar is looking forward to retirement in a few years when he will have completed 20 years of pensionable service. Oscar's pension plan provides an annual pension benefit of 1.5% of average career earnings for each year of pensionable service. Using information from Oscar's pension statements, he estimates his career average annual earnings will be $50,000 when he retires with 20 years of service. Given these assumptions, calculate Oscar's annual pension benefit that he can expect to receive when he retires. $7,500 $10,000 $15,000 $20,000
Malcolm knows about the Old Age Security (OAS) pension clawback but is unsure how to calculate if for him and his wife. In 2020, the OAS pension is clawbacked or reduced by 15% above $79,054. Malcolm and his wife are both receiving monthly pensions of $613.54. His net income is $130,000 while his wife's net income is $85,000. What is the total amount they have to repay in 2020? Minimum Income Recovery Threshold Maximum Income Recovery Threshold $79,054 $8,254 $14,725 $892 $13,833 $7,362 $128,137
A client needs assistance with retirement planning. Here are the facts: The client, Dave, is 21 years old. He wants to retire at 65. Dave has disposable income of $2,000 per month. The IRA Dave has chosen has an average annual return of 8%. Question 1. If Dave contributes half of his disposable income to the account, what will it be worth at 65? Question 2. How much would he need to contribute to have $5,000,000 at 65?
An individual is currently 30 years old, wants to work until the age of 65 and plans on dying at the age of 85. How much will the individual need to have saved by the time he or she is 65 if he or she plans on spending $40,000 per year while retired? You can assume the individual can earn an interest rate of 5.0% and the $40,000 is in addition to any Social Security that may be received
Your friend's father just turned 55 and is thinking of joining CPF LIFE. He tells you that if he sets aside the Basic Retirement Sum (BRS) of $90,500 today, he can expect an approximate monthly payout from age 65 of $780 for as long as he shall live. Alternatively, if he sets aside the Full Retirement Sum (FRS) of $181,000 today, he can expect an approximate monthly payout from age 65 of $1,440. Assume that the interest rate is 4% and that compounding occurs monthly. Required : (a) What is the breakeven age for the BRS plan? (b) What is the breakeven age for the FRS plan? (c) At what life expectancy would your friend's father be indifferent between the two (2) plans? Which plan should he choose given male life expectancy in Singapore?
Your client is currently 19 years old. Your client wishes to retire at age 71. Your client's expected lifetime is 96 years. Your fund generates a return of 4.3%. Your client wants to have a pension benefit of 143,000. calculate the annual contribution your client needs to make.
.A self-employed person deposits $3,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 8 percent. How much additional money will be in the account if the saver defers retirement until age 70 and continues the contributions?
Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $130,000 immediately as her full retirement benefit. Under the second option, she would receive $19,000 each year for 5 years plus a lump-sum payment of $75,000 at the end of the 5-year period. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 11%. 1-b. If she can invest money at 11%, which option would you recommend that she accept? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 If she can invest money at 11%, which option would you recommend that she accept? First option Second option
Jay has just retired and will receive a pension of 3,857 per month for 20 years. After which he begins receiving a social security benefits of 2,000 per month for 5 years at 7% compounded monthly. What is the present value of his pension?