Present value. The State of Confusion wants to change the current retirement policy for state employees. To do so, however, the state must pay the current pension fund members the present value of their promised future payments. There are 240,000 current employees in the state pension fund. The average employee is 18 years away from retirement, and the average promised future retirement benefit is $480,000 per employee. If the state has a discount rate of 7% on all its funds, how much money will the state have to pay to the employees before it can start a new pension plan? How much money will the state have to pay to the employees before it can start a new pension plan? (Round to the nearest dollar.)
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- Present value. The State of Confusion wants to change the current retirement policy for state employees. To do so, however, the state must pay the current pension fund members the present value of their promised future payments. There are 230,000 current employees in the state pension fund. The average employee is 16 years away from retirement, and the average promised future retirement benefit is $380,000 per employee. If the state has a discount rate of 4% on all its funds, how much money will the state have to pay to the employees before it can start a new pension plan?P3-11 (similar to) Present value. The State of Confusion wants to change the current retirement policy for state employees. To do so, however, the state must pay the current pension fund members the present value of their promised future payments. There are 210,000 current employees in the state pension fund. The average employee is 16 years away from retirement, and the average promised future retirement benefit is $420,000 per employee. If the state has a discount rate of 6.5% on all its funds, how much money will the state have to pay to the employees before it can start a new pension plan? How much money will the state have to pay to the employees before it can start a new pension plan? (Round to the nearest dollar)If answered within 30mins,it would be helpful.surely will upvote The Village of Bensonville has a pension trust fund for its public safety employees. For the year ended December 31, 2021, an actuarial consulting firm determined that the Village’s annual general fund contribution to the pension trust fund should be $3,250,000. However, due to a downturn in the local economy, the Village appropriated only $2,750,000 for its 2021 pension contribution to the public safety pension trust fund. From January through November, 2021, the Village contributed $2,460,000 to its public safety pension trust fund. The Village will make its December, 2021, contribution of $200,000 to the pension trust fund during the first week in January, 2022. Based on the information provided, what amount should be reported for expenditures on the statement of revenues, expenditures, and changes in fund balance for the general fund for the year ended December 31, 2021, and what amount should be reported under…
- A defined benefit pension plan expects to pay out $23 million per year over the next 27 years to pensioners. The fund currently has $176 million in pension assets that are earning 8.2% per year. By how much is this plan over/under funded? (Do not round intermediate calculations. Round your answer to a whole number. Use a negative sign to denote underfunded)(Pension Funding) You have been hired as a benefit consultant by Jean Honore, the owner of Attic Angels. She wants to establish a retirement plan for herself and her three employees. Jean has provided the following information. The retirement plan is to be based upon annual salary for the last year before retirement and is to provide 50% of Jean’s last-year annualsalary and 40% of the last-year annual salary for each employee. The plan will make annual payments at the beginning of each year for 20 years from the date of retirement. Jean wishes to fund the plan by making 15 annual deposits beginning January 1, 2017. Invested funds will earn 12% compounded annually. Information about plan participants as of January 1, 2017, is as follows. Jean Honore, owner: Current annual salary of $48,000; estimated retirement date January 1, 2042.Colin Davis, flower arranger: Current annual salary of $36,000; estimated retirement date January 1, 2047.Anita Baker, sales clerk: Current annual salary of…The State of Texas has a pension fund liability of $25 million, due in 10 years. Each year the legislature is supposed to set aside an annuity to arrive at this future value. This annuity is based on what the legislature believes it can earn on this money. Estimate the annuity needed each year for the next 10 years, assuming that the interest rate that can be earned on the money is 6%. $1,896,699 $3,657,129 $6,687,085 $4,675,987
- The City of Nomanchester has a defined benefit pension plan for a number of its employees. A pension trust fund has been set up that currently has a net position of $32.7 million because quite a number of investments are being held. An actuary estimates that employees will eventually receive $99.7 million as a result of this pension. However, only $72.4 million of that amount is for past work that has been provided. The present value of the $72.4 million in payments is $49.8 million. On its government-wide financial statements, what amount of net pension liability should be reported? zero $17.1 million $39.7 million $67.0 millionStanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2024 and 2025.* A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $280,000 for 2024 and $370,000 for 2025. Year-end funding is $290,000 for 2024 and $300,000 for 2025. No assumptions or estimates were revised during 2024. *We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (i.e., 200,000 should be entered as 200). Enter a liability as a negative amount. 1.…Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% In 2024 and 2025.* A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $200,000 for 2024 and $300,000 for 2025. Year-end funding is $210,000 for 2024 and $220,000 for 2025. No assumptions or estimates were revised during 2024. "We assume the estimated return was based on the actual return on similar Investments at the Inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (l.e., 200,000 should be entered as 200). Enter a llability as a negative amount. December…
- Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2024 and 2025.* A consulting firm, engaged as actuary, recommends 4% as the appropriate discount rate. The service cost is $150,000 for 2024 and $280,000 for 2025. Year-end funding is $160,000 for 2024 and $170,000 for 2025. No assumptions or estimates were revised during 2024. *We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (i.e., 200,000 should be entered as 200). Enter a liability as a negative amount. X Answer…Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2024 and 2025.* A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $180,000 for 2024 and $230,000 for 2025. Year-end funding is $190,000 for 2024 and $200,000 for 2025. No assumptions or estimates were revised during 2024. *We assume the estimated return was based on the actual return on similar investments at the Inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: Note: Enter your answers in thousands (l.e., 200,000 should be entered as 200). Enter a llability as a negative amount. 1.…(B) Big City provides a defined benefit pension plan for employees of the city water department, an enterprise fund. Assume that the service cost component is $420,000, and interest on the pension liability is $380,000 for the year. Actual returns on plan assets for the year were $300,000 while the projected level of earnings on plan investments was $360,000. This difference is to be amortized over a 5 year period, beginning this year. Finally assume the City is amortizing a deferred inflow resulting from a change in plan assumptions from a prior year in the amount of $10,000 per year. Required: Prepare journal entries to record annual pension expense for the enterprise fund.