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  #11  
Old 02-22-2015, 07:12 PM
doglover47 doglover47 is offline
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I am working through the EOM3 again as I also DMMR.

I am with you in that I interpret this to mean the additional contribution needed to fund the DB minimum on a DC basis. If I'm on the right track, I took this to mean the difference in contributions from Task #1 - calculating the equivalent DC contribution rate to the DB formula they are describing to what we've done in Task #2.

In Task #1, Since we were able to remove the 15% cap I also used a flat dollar for both up to and over the covered comp. I goal-seeked and backed into this amount, FWIW.

I used those items in Task #1 to come up with an age-graded scale for Task #2. I am thinking I will have to restrict some of the benefits for the executives in order to stay within the 15% budget limit.

The difference in contributions under Task #1 and Task #2 is my Task #3.

Also, for what it is worth, I am a pension actuary and this exercise confuses me too with the way it is written. I cannot think of very many good reasons to do what they are describing...
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  #12  
Old 02-23-2015, 12:42 PM
theojd theojd is offline
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Ha, I am also in pensions which makes this all the more frustrating. And yea, this seems out of touch with what we actually do...

I did the same for Task 1.

For Task 2 I just maxed out what the "long term" employees could receive based on the rules and just scaled down from there which sounds similar.

For Task 3, I only end up with additional contribs for the 3 or 4 long term employees because they're the only ones who need them and it's just annoying because my aggregate contributions as a percent of earnings are just way higher than the company's threshold (not to mention the Cascadia laws). This makes me think I have done something wrong and that's my issue.

Task 1 says we can ignore the 15% cap. Are you ignoring for the rest of the assignment? This is also not very clear. It seems you'd have to in order to do what they ask.

I still haven't resubmitted this because every time I look at this assignment it upsets me.
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  #13  
Old 02-28-2015, 10:55 AM
doglover47 doglover47 is offline
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I mean, if you think about it, satisfying all employees no matter what you do is impossible. That's why they have SERPs.

I did remove the 15% cap for the remainder of the assignment. I assumed that all of the tasks built on one another. Hope this helps!
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  #14  
Old 04-16-2016, 12:25 PM
PrfctPRACm8ksPrfct PrfctPRACm8ksPrfct is offline
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This also is confusing to me. TASK 3: It says it will provide the GREATER of the DC and the DB (already set). Why do we need to add additional contribution if they are already going to pay the greater... The 24% max is applied to the top 2 employees so they are the only ones where DB is better. Why does this exercise continue to provide NO direction?? I'm going to give the answer as how I read it and provide the question as how they worded it. I interpreted it and answered it so they should practice what they preach (communication).
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Last edited by PrfctPRACm8ksPrfct; 04-16-2016 at 12:38 PM..
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  #15  
Old 01-18-2017, 11:49 AM
Zinger Zinger is offline
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Quote:
Originally Posted by doglover47 View Post
I am working through the EOM3 again as I also DMMR.

I am with you in that I interpret this to mean the additional contribution needed to fund the DB minimum on a DC basis. If I'm on the right track, I took this to mean the difference in contributions from Task #1 - calculating the equivalent DC contribution rate to the DB formula they are describing to what we've done in Task #2.

In Task #1, Since we were able to remove the 15% cap I also used a flat dollar for both up to and over the covered comp. I goal-seeked and backed into this amount, FWIW.

I used those items in Task #1 to come up with an age-graded scale for Task #2. I am thinking I will have to restrict some of the benefits for the executives in order to stay within the 15% budget limit.

The difference in contributions under Task #1 and Task #2 is my Task #3.

Also, for what it is worth, I am a pension actuary and this exercise confuses me too with the way it is written. I cannot think of very many good reasons to do what they are describing...
I am also working through this assignment and not sure how to complete any of these. So for Task #1 we remove 15 % cap. Where do you use flat $ for up to and over the covered comp? I thought we are deriving the theoretical level formula, therefore we just plug in employee data and find DC rate that would bring us closely to the DB replacement ratio. Am I reading this correctly? Also, for higher earning employees DC rate that I am getting is something like 20% up to and 40% in excess to. What am I missing here?
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  #16  
Old 01-18-2017, 11:58 AM
Zinger Zinger is offline
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Quote:
Originally Posted by PrfctPRACm8ksPrfct View Post
This also is confusing to me. TASK 3: It says it will provide the GREATER of the DC and the DB (already set). Why do we need to add additional contribution if they are already going to pay the greater... The 24% max is applied to the top 2 employees so they are the only ones where DB is better. Why does this exercise continue to provide NO direction?? I'm going to give the answer as how I read it and provide the question as how they worded it. I interpreted it and answered it so they should practice what they preach (communication).
Please help me to make sense of this assignment!
How do I approach tasks 1-3? I am so lost here...
Task #1: I used employee data and plugged in to the input tab to get the DC rate that closely matches DB contribution rate (after removing 15% cap). I didn't alter anything else and I am getting unreasonable results for higher earning employees (ex: 20% up to covered earnings and 40% in excess of covered earnings). What am I missing here?
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  #17  
Old 01-25-2017, 04:35 PM
Actuarial Brewski Actuarial Brewski is offline
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Quote:
Originally Posted by Zinger View Post
Please help me to make sense of this assignment!
How do I approach tasks 1-3? I am so lost here...
Task #1: I used employee data and plugged in to the input tab to get the DC rate that closely matches DB contribution rate (after removing 15% cap). I didn't alter anything else and I am getting unreasonable results for higher earning employees (ex: 20% up to covered earnings and 40% in excess of covered earnings). What am I missing here?
I think that is fine for task 1.. It is theoretical so you dont really need to do anyhting else with it.

For task 2 they mention mins/maxs and an overall contribution target to where you could adjust theoritcal % from task 1
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  #18  
Old 06-20-2019, 12:52 PM
chable chable is offline
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Default Please help

Quote:
Originally Posted by PrfctPRACm8ksPrfct View Post
This also is confusing to me. TASK 3: It says it will provide the GREATER of the DC and the DB (already set). Why do we need to add additional contribution if they are already going to pay the greater... The 24% max is applied to the top 2 employees so they are the only ones where DB is better. Why does this exercise continue to provide NO direction?? I'm going to give the answer as how I read it and provide the question as how they worded it. I interpreted it and answered it so they should practice what they preach (communication).
Can anyone explain to me what numbers I am supposed to be putting into the "theoretical member contribution rate"? Is it the combinations of the "up to covered earnings" and the excess of covered earnings? Or just one of these? I am so damn confused and can't do this a third time.

I also don't understand what I'm doing in task 2. Am I changing %'s in the CareerProjections file or the EmployeeData?
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  #19  
Old 06-20-2019, 01:34 PM
chable chable is offline
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Quote:
Originally Posted by PrfctPRACm8ksPrfct View Post
This also is confusing to me. TASK 3: It says it will provide the GREATER of the DC and the DB (already set). Why do we need to add additional contribution if they are already going to pay the greater... The 24% max is applied to the top 2 employees so they are the only ones where DB is better. Why does this exercise continue to provide NO direction?? I'm going to give the answer as how I read it and provide the question as how they worded it. I interpreted it and answered it so they should practice what they preach (communication).
Did you end up MMR the second time around??

I am just looking for any help I can get. I cannot figure out what I am supposed to be inputting into the "theoretical member contribution rate". Or just task 2 in general. This makes absolutely no sense.

And how did you take the difference for task 3?
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