Funding Pension Benefits: The Individual Spread Gain Method (UMAP)

This module relates precalculus with the individual spread gain method (also known as the individual aggregate method) of funding pension benefits. It includes examples and a practitioner's commentary.

Table of Contents:

INTRODUCTION

BASIC EXAMPLE

SALARY-DEPENDENT BENEFIT

AMORTIZATION AS A PERCENTAGE OF SALARY

A LARGER PENSION PLAN

REFERENCES

ANSWERS TO EXERCISES

APPENDIX: PRACTITIONER'S COMMENTARY BY THOMAS R. ECKERT