RET - Week 03 Slide Questions (W23)
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Feb 20, 2024
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Retirement Planning Week 3 Winter 2023 Page 1 Review Questions –
Registered Pension Plans (Part 1) 1.
What is a registered pension plan (RPP)? 2.
How are private pension plans regulated in Canada? 3.
How is a private pension plan administered? 4.
Why is vesting important to employees who change employers during their career? 5.
Why is portability important to employees who change employers during their career? 6.
What is the normal retirement age (NRA) of a private pension plan? 7.
How is a contributory plan different from a non-contributory plan?
Retirement Planning Week 3 Winter 2023 Page 2 8.
What is a defined benefit plan (DBP)? 9.
How do final earnings or best average earnings DBPs work? 10.
How does a career average DBP work? 11.
How does a flat benefit type of DBP work? 12.
Greg participated in his company’s pension plan for 25 years, which provides benefits of 1.85% for each year of service, based on the member’s average earnings in the final three years of service. If he earned $50,000 in 2020, $55,000 in 2021, and $65,000 in 2022, what is his pension? 13.
Wendy is retiring after 20 years of participation in her employer’s pension plan, which provides a benefit of 2.0% of her best earnings over three consecutive years. Calculate her pension given the following recent earnings history: $55,000 in 2018; $70,000 in 2019; $80,000 in 2020; $85,000 in 2021; and $65,000 in 2022.
Retirement Planning Week 3 Winter 2023 Page 3 14.
What are the advantages and disadvantages of a final/best average defined benefit plan to the employees and to the employers? 15.
Who is responsible for maintaining the solvency of a DBP? 16.
How are employer contributions toward a DBP calculated? 17.
If there is a surplus in the plan, who should benefit, the employer or employees? 18.
What are current service contributions? 19.
What are past service contributions? 20.
Paula is retiring from an employer whose defined benefit pension plan is based on 1.75% of the plan member’s career average earnings. Assume she earned an average salary of $65,000 each year during her 12 years of participation in the plan. What is her pension?
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Related Questions
QUESTION 3 Bacon Bad is a national diner that has set up
a defined benefit pension plan for its employees. The
company uses IFRS and has provided you with the
following information pertaining to its pension plan:
Pension obligation, December 31,2021 - $6854203 Plan
assets, December 31, 2021 - $5906519 Interest rate on
pension obligations - 3% Current service cost for the year
(accrued at the end of the year) - $598059 Improvement in
pension plan, effective on January 1, 2022 - $62000
Actuarial gain on change in assumptions - $0 Expected
retum on plan assets -3% of plan assets Actual return on
plan assets - $271186 Amounts remitted by employer to
pension trust on January 1,2022 - $668416 Payments
we do not need payment to retiree
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Help me
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Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation
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Give typing answer with explanation and conclusion
QUESTION 10
To assist pensioners with more than one source of income, legislation was introduced to make provision for SARS to determine a more accurate PAYE deduction amount, using the latest data available to SARS. Which of the following statements is incorrect?
a.
This only applies to pensioners.
b.
Pensioners have to apply to SARS for the PAYE deduction rate applying to them.
c.
The legislation came into effect on 1 March 2021.
d.
All of the above.
e.
None of the above.
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66
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Question 19
Which of the following correctly describes defined benefit (DB) pension plans?
A- A typical example of DB plan is 401(K) savings account
B- Retirement benefits depend on how much money has accumulated in an individual's account.
C- Employers never need to report a liability related to DB plans
D- Retirement benefits are based on the plan benefit formula.
O A
O B
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Please help me to solve this problem
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Payroll Accounting 2020 by Landin
Question:
Ed Myers is verifying the accuracy and amount of information contained in the employee records for his employer, Genible Industries. Which of the following items should be present in the employee information?
Social Security number. checkedJob title. checkedEmployee address. checkedBirth date, if greater than 19.
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Actuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024:
Prior service cost at January 1, 2024, from plan amendment at the beginning of
2022 (amortization: $4 million per year)
Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains)
Average remaining service life of the active employee group
Actuary's discount rate
($ in millions)
Beginning of 2024
Service cost
Interest cost, 8%
Loss (gain) on PBO
Less: Retiree benefits
End of 2024
Beginning of 2025
Service cost
PBO
$ 300
48
Interest cost, 8%
Loss (gain) on PBO
Less: Retiree benefits
End of 2025
24
(2)
(20)
$ 350
PBO
$ 350
38
28
5
Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during
2025:
($ in millions)
(16)
Beginning of 2024
Return on plan assets, 7.5% (10%
expected)
$ 405
Cash contributions
Less: Retiree benefits
End of 2024
Beginning of 2025
Return on plan assets, 15% (10%
expected)
$…
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Plz answer fast without plagiarism please ?
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QUESTION 9
Private (employer) sources for funding your retirement could include all of the following, except:
A. Pension
O B. Personal Roth IRA
C. 401 (k) Plan
O D. Cash balance plans
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a.
Into which type of account are employer's payroll contributions entered?
i.
Asset
Expense
Revenue
Retained Earnings
ii.
iii.
iv.
b. What type of account is the Employee Advances account?
i.
Asset
ii.
iii.
iv.
c. What is the employer premium amount for Employment Insurance?
i.
3.3 times the employee premium
ii.
iii.
iv.
Liability
Equity
Expense
ii.
iii.
iv.
d. What is the employer contribution amount for Canada Pension Plan (CPP)?
The same as amount as the employee's premium
i.
The same amount as the employee premium
1.4 times the employee premium
None of the above
iii.
iv.
3.3 times the employee's premium
1.2 times the employee's premium
1.6% of the employee's premium
e. The payroll taxes are remitted to the
i.
ii.
Ontario Revenue Agency
Ministry of Finance
Canada Revenue Agency
Receiver General of Canada
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7. Monthly Social Security benefits
Monthly Benefits
The Social Security Administration has a computerized service that determines your benefits because Social Security benefits are based on a fairly complicated formula. In fact, the government is required to provide all covered workers with a Social Security Statement.
Identify the range of benefits you can expect.
•
If you retire at age 62, benefits of
to
% of yourfull retirement benefits .
•
If you retire at age 65 to 67, receipt ofyour full retirement benefits .
•
If you delay retirement until age 70, you can receive an increase in your benefits.
Range of Benefits
Dmitri, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $1,635.40. Assume that the benefit is the same for this year and the next year.
Compute Dmitri’s annual benefit reduction amounts in each of the following scenarios.
•
If Dmitri retires…
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TB Problem 17-186 (Static) The following is an incomplete...
The following is an incomplete pension spreadsheet for the current year for Sparky Corporation.
Required:
1. Complete the pension spreadsheet.
2. Prepare the journal entries to record pension expense and funding of plan assets for the year.
3. Prepare the journal entry(ies) to record any gains or losses for the year.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Complete the pension spreadsheet.
($ in millions) debit (credit)
PBO
Plan Assets
Prior Service
Cost
Net(Gain)Los8
Pension
Expense
Net Pension
Cash
Beginning balance
450
60
55
(Liability) or Asset
(10)
Service cost
(85)
Interest cost
(45)
Expected return on assets
55
(Gain) or loss on assets
Amortization of:
Prior service cost
Net (gain) or loss
Loss on PBO
Contributions to fund
Retiree benefits paid
Ending balance
(32)
40
(562)
3
(1)
54
89
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Question text
Dickson Manufacturing Corp., a company reporting
under IFRS, has a defined benefit pension plan. Pension
information concerning the 2020 fiscal year is
presented below (in millions):
Information provided by the pension plan trustee
Fair value of plan assets, January 1, 2020
$1,600
Actual return on plan assets, 2020
224
The discount rate used in actuarial assumptions is 10%.
What is the balance of the plan assets as at December
31, 2020?
Select one:
17
а.
$1,664
b.
$1,824
c.
$1,376
d.
$1,760
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Required:
1-a. Determine Douglas-Roberts's pension expense for 2021
1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the
cash contribution to plan assets and to record retiree benefits
Complete this question by entering your answers in the tabs below.
Req 1A
Req 18 and 2
to 4
Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash
contribution to plan assets and to record retiree benefits. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field. Enter your answers in millions (Le 10,000,000 should be entered as 10).)
View transaction list
Journal entry worksheet
1
2
3
1
Record annual pension expense
Note: Exer debts before credits
4
5
Genet Jumal
Det
Credit
View general journal
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22
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Payroll Accounting 2020 by Landin
Question:
Ginger Klein is the payroll clerk for Neolane Transportation. A colleague who is classified as an independent contractor requests to be classified as an employee. What factors should Ginger consider?
Relationship of the parties.checked
Behavioral control.checked
Financial control.checked
Method of compensation.
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Need Part C
Do Not Give image format
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Question 17: Which of these is NOT a regulation set forth within ERISA?
Answer:
A.
Employees must be provided with pertinent retirement plan information.
В.
Employers are required to offer retirement plans.
C.
Fiduciaries of the retirement plan may be held accountable for breaches of responsibility.
D.
There are specific timeframes over which retirement plan benefits become nonforfeitable.
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Question 1: EMPLOYEE BENEFITS
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3
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Monthly Benefits
The Social Security Administration has a computerized service that determines your benefits because Social Security benefits are based on a fairly complicated formula. In fact, the government is required to provide all covered workers with a Social Security Statement.
Identify the range of benefits you can expect.
If you retire at age 62, benefits of _________ to _________% of your ____________.
If you retire at age 65 to 67, receipt of _______________________________________.
f you delay retirement until age 70, you can receive _________________in your benefits.
Range of Benefits
Tim, a 66 years old worker, is deciding between retirement either this year or the next year. His average monthly benefit is determined to be $1,635.40. Assume that the benefit is the same for this year and the next year.
Compute Tim’s annual benefit reduction amounts in each of the following scenarios.
If Tim retires this year and secures a part-time job earning $19,000, his…
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SEE MORE QUESTIONS
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Related Questions
- QUESTION 3 Bacon Bad is a national diner that has set up a defined benefit pension plan for its employees. The company uses IFRS and has provided you with the following information pertaining to its pension plan: Pension obligation, December 31,2021 - $6854203 Plan assets, December 31, 2021 - $5906519 Interest rate on pension obligations - 3% Current service cost for the year (accrued at the end of the year) - $598059 Improvement in pension plan, effective on January 1, 2022 - $62000 Actuarial gain on change in assumptions - $0 Expected retum on plan assets -3% of plan assets Actual return on plan assets - $271186 Amounts remitted by employer to pension trust on January 1,2022 - $668416 Payments we do not need payment to retireearrow_forwardHelp mearrow_forwardDon't use ai to answer I will report your answer Solve it Asap with explanation and calculationarrow_forward
- Give typing answer with explanation and conclusion QUESTION 10 To assist pensioners with more than one source of income, legislation was introduced to make provision for SARS to determine a more accurate PAYE deduction amount, using the latest data available to SARS. Which of the following statements is incorrect? a. This only applies to pensioners. b. Pensioners have to apply to SARS for the PAYE deduction rate applying to them. c. The legislation came into effect on 1 March 2021. d. All of the above. e. None of the above.arrow_forward66arrow_forwardQuestion 19 Which of the following correctly describes defined benefit (DB) pension plans? A- A typical example of DB plan is 401(K) savings account B- Retirement benefits depend on how much money has accumulated in an individual's account. C- Employers never need to report a liability related to DB plans D- Retirement benefits are based on the plan benefit formula. O A O Barrow_forward
- Please help me to solve this problemarrow_forwardPayroll Accounting 2020 by Landin Question: Ed Myers is verifying the accuracy and amount of information contained in the employee records for his employer, Genible Industries. Which of the following items should be present in the employee information? Social Security number. checkedJob title. checkedEmployee address. checkedBirth date, if greater than 19.arrow_forwardActuary and trustee reports indicate the following changes in the PBO and plan assets of Lakeside Cable during 2024: Prior service cost at January 1, 2024, from plan amendment at the beginning of 2022 (amortization: $4 million per year) Net loss-pensions at January 1, 2024 (previous losses exceeded previous gains) Average remaining service life of the active employee group Actuary's discount rate ($ in millions) Beginning of 2024 Service cost Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2024 Beginning of 2025 Service cost PBO $ 300 48 Interest cost, 8% Loss (gain) on PBO Less: Retiree benefits End of 2025 24 (2) (20) $ 350 PBO $ 350 38 28 5 Assume the following actuary and trustee reports indicating changes in the PBO and plan assets of Lakeside Cable during 2025: ($ in millions) (16) Beginning of 2024 Return on plan assets, 7.5% (10% expected) $ 405 Cash contributions Less: Retiree benefits End of 2024 Beginning of 2025 Return on plan assets, 15% (10% expected) $…arrow_forward
- Plz answer fast without plagiarism please ?arrow_forwardQUESTION 9 Private (employer) sources for funding your retirement could include all of the following, except: A. Pension O B. Personal Roth IRA C. 401 (k) Plan O D. Cash balance plansarrow_forwarda. Into which type of account are employer's payroll contributions entered? i. Asset Expense Revenue Retained Earnings ii. iii. iv. b. What type of account is the Employee Advances account? i. Asset ii. iii. iv. c. What is the employer premium amount for Employment Insurance? i. 3.3 times the employee premium ii. iii. iv. Liability Equity Expense ii. iii. iv. d. What is the employer contribution amount for Canada Pension Plan (CPP)? The same as amount as the employee's premium i. The same amount as the employee premium 1.4 times the employee premium None of the above iii. iv. 3.3 times the employee's premium 1.2 times the employee's premium 1.6% of the employee's premium e. The payroll taxes are remitted to the i. ii. Ontario Revenue Agency Ministry of Finance Canada Revenue Agency Receiver General of Canadaarrow_forward
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Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning