Actuarial Outpost
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > SoA > Modules 1-5
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

DW Simpson Global Actuarial & Analytics Recruitment
Download our Actuarial Salary Survey
now with state-by-state salary information!

Thread Tools Search this Thread Display Modes
Old 05-17-2014, 08:15 PM
appana appana is offline
Join Date: Jan 2011
Location: Denver, CO
Studying for MLC
College: University of Colorado Alumni
Favorite beer: Isadore Java Porter
Posts: 327
Default EOM 3

Just had a few questions on this exercise -- would appreciate any input from others.
  1. Contribution Rates may vary between employees under the DC plan, but there needs to be a 3/4 ratio between the plan's highest and its lowest contribution rates.
  2. What is the recommended defined contribution formula for the Chocolate Factory Pension plan?

For #1, I took that to mean that if the split rate DC formula for an employee is 12% and 15%, then the lowest contribution employee needs to have bounds of 9% and 11.25%. Additionally, the final member contribution rate (Column J in the Contribution Summary tab of the Employee Data workbook), also needs to satisfy the 3/4 ratio. Is this correct?

For #2, I feel like the recommended formula changed between Task 2, 5 and 6. And I am not sure I came up with one formula that works for every employee of the Chocolate Factory. Anyone else had this issue?
VEE Finance Econ Stats
FAP 1 2 3 4 5 IA 6 7 8 FA

Reply With Quote

chocolate factory, eom 3

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

All times are GMT -4. The time now is 04:34 AM.

Powered by vBulletin®
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.49702 seconds with 9 queries