(Preparation of Pension Trust Fund schedule of funding progress) ...

[ETearle]

(Preparation of Pension Trust Fund schedule of funding progress)
 
  Based on the following data elements (not all of which are relevant to this problem) calculate (a) the funded ratio and (b) the unfunded actuarial accrued liability as a percentage
 
  of covered payroll for Elisa County's schedule of funding progress at December 31, 2013 .
   Total investments, at fair value, January 1, 2013 11,500,000
   Actuarial accrued liability at December 31, 2013 15,750,000
   Pension benefits paid during the year 2013 3,100,000
   Actuarial value of assets at December 31, 2013 13,800,000
   Total payroll for year 2013, including overtime 4,000,000
   Covered payroll for year 2013 3,800,000
 
  What will be an ideal response?

Question 2

Which of the following is not a relationship type?
 a. one-to-many
  b. one-to-one
  c. one-to-few
  d. many-to-many

[vickyvicksss]

Answer to Question 1

a) Funded ratio at December 31, 2013:
Actuarial value of assets / Actuarial accrued liability
13,800,000 / 15,750,000 = 87.6

b) Unfunded actuarial accrued liability as a percent of covered payroll at December 31, 2013:
Unfunded actuarial accrued liability / Covered payroll
 1,950,000 /  3,800,000 = 51.3

Note - The unfunded actuarial accrued liability at December 31, 2013, is the difference between the actuarial accrued liability (15,750,000) and the actuarial value of assets (13,800,000), or 1,950,000

Answer to Question 2

C

[ETearle]

YES! Correct, THANKS for helping me on my review

[brbarasa]

Thanks for the timely response, appreciate it