I'm creating a hybrid pension plan where each employee receives "the greater the pension that can be provided by the individual member‟s DC assets at retirement and the pension equal to 1.05% of pensionable earnings up to the CPP covered earnings limit and 1.50% of covered earnings in excess of the CPP covered earnings limit per year of service."
I know how to figure out which is greater, but I'm having a tough time figuring out what the yearly DB contributions are and how to put them into the budget to compare to the DC-only plan. I work in health and I don't really know too much about pensions. My only thought is it seems like I need some life annuity factors for ages 50 and 51 that I don't have to back out 2006's contribution.
Or is the accrued pension always based on a retirement age of 65? if so how do I factor in for investment gains and inflation when calculating this year's budget impact?
I know how to figure out which is greater, but I'm having a tough time figuring out what the yearly DB contributions are and how to put them into the budget to compare to the DC-only plan. I work in health and I don't really know too much about pensions. My only thought is it seems like I need some life annuity factors for ages 50 and 51 that I don't have to back out 2006's contribution.
Or is the accrued pension always based on a retirement age of 65? if so how do I factor in for investment gains and inflation when calculating this year's budget impact?
EOM3(ex.2 task 3)- calculating DB plan's impact on budget
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