What is the Present Value (@ a 3% discount rate) of the retirement benefits from the DB plan, assuming all employees will receive the DB pension income for exactly 15 years?
When Enola and everyone stops working at FMI (in 26 years), what is the future single premium that an insurer would charge for FMI’s entire pension risk, based on our discussion in class about the cost of retirement (annuity) income? For each year that a person retires before (after) age 65, increase (decrease) the cost […]