Financial Accounting > QUESTIONS & ANSWERS > You are a pension consultant who was recently engaged by Awesome Benert Company (ABC) to become the (All)

You are a pension consultant who was recently engaged by Awesome Benert Company (ABC) to become the valuation actuary for their frozen derned benert pension plan. You have also been hired to help with delivering and tracking a funding strategy for the maintenance and eventual termination of the plan.

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You are a pension consultant who was recently engaged by Awesome Question 숤 Answered step-by-step You are a pension consultant who was recently engaged by Awesome... You are a pension consultant ... who was recently engaged by Awesome Benert Company (ABC) to become the valuation actuary for their frozen derned benert pension plan. You have also been hired to help with delivering and tracking a funding strategy for the maintenance and eventual termination of the plan. • Your assignment with the pension plan is brand new to your consulting rrm and the valuation processes are being initiated for the rrst time. You will be given experience data and prior valuations from the previous actuary. • The plan has an annual valuation every January 1. • The plan was frozen (no additional benert accruals for plan participants) 5 years ago. • ABC has adopted a liability driven investment (LDI) strategy to maintain funded status. o The LDI strategy involves creating an asset mix of similar nature to the characteristics of the plan liabilities (e.g. duration matching) to prevent large swings in funded status). • The plan currently has the following characteristics as of the most recent January 1 valuation: o $1,350 million in assets. o $1,500 million in liabilities. o 90% funded percentage; $150 million funding shortfall. • Termination of the pension plan would primarily relieve the company of any future risk and obligations to the plan participants. ABC would like to implement a strategy to fully fund the plan within the next 10 years and sometime afterward terminate the plan by transferring the assets and liabilities to an insurer. You have assigned your actuarial student to complete [Show More]

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