Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Pension - Social Security
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Reply
 
Thread Tools Search this Thread Display Modes
  #11  
Old 11-03-2008, 10:18 PM
Actiger Actiger is offline
Member
SOA CCA AAA
 
Join Date: May 2007
Location: NYC
Studying for Married Life
Posts: 1,373
Default

Quote:
Originally Posted by student_actuary View Post
Im trying to calculate the Pre-funding balance as at 01/01/2009. For this we need to calculate the "excess" of actual 2008 contribution made over required 2008 contribution as at 01/01/2008 and then carry that forward to 1/1/2009 by giving it interest at the rate of return on 2008 assets.
NO!! There's no prefunding balance as of 1/1/2008!!

You carry forward the "excess contributions" (not prefunding balances) with the effective interest rate to 1/1/2009. Whatever excess you have as of 1/1/2008 doesn't create prefunding balance until 1/1/2009. Any leftover credit balances after applying towards MRC are credited with the rate of return on assets.

Say you have prefunding balance left after applying towards MRC determined as of 1/1/2009. You also made contributions in excess of MRC. Then you carry forward the leftover prefunding balance to 1/1/2010 using the rate of return on assets, and the excess contribution accrues interest at the effectve rate to 1/1/2010. Hope this helps.
Reply With Quote
Reply

Tags
balances, ea-2a

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 11:52 AM.


Powered by vBulletin®
Copyright ©2000 - 2019, 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 0.12976 seconds with 11 queries