标题: Pension Plan Funding Requirements [打印本页] 作者: bchadwick 时间: 2011-7-13 13:38 标题: Pension Plan Funding Requirements
Accrued benefits for retirees and active participants have to be covered. This forms the Accumulated Benefit Obligation (ABO).
Future benefits include:
(i) Future wages for active employees
(ii) Inflation growth for past and future wages
(ii) Real growth for past and future wages
The above in addition to deferred employee benefits and ABO sum up to the total Projected Benefit Obligation - this PBO is used in calculating the surplus or shortfall.
What is Future Services Rendered? I understand that this is not covered.
Also, what is the discount rate typically used to compute the liabilities?作者: bpdulog 时间: 2011-7-13 13:38
DR should be rate of long term bond作者: pennyless 时间: 2011-7-13 13:38
Long term high quality (govt) bond, that is作者: Valores 时间: 2011-7-13 13:38
I understand that to compute PV of Liabilities, you use the same IRR as that of the asset portfolio used to fund the liabilities.作者: liangfeng 时间: 2011-7-13 13:38
Future services rendered is the amount you have to allocate for an employee assuming they don't get fired or leave.
