[lampy44]

Anyone want to point me in the direction to knock out Pensions? I am having a really hard time. Working through Becker and Ninja Notes. Ninja seems to skim over pensions so maybe I am stressing for no reason. I just see a pension sim in my nightmares and 75 is the far, far distance. Thanks guys.

[Ana]

First focus: Do you understand how to note whether it's under/over funded? Also, how to calc the actual rate of return?
Then on SIRAGE, which part is confusing?

[lampy44]

Yes, over/underfunded is PBO – FV = under/over underfunded is a current/non-current liab, overfunded is a NC asset

Actual rate of return I have down in multiple choice pretty well: Beg FV + contributions – benefits paid + actual return (plug) = End FV of plan assets

I guess I am just getting really overwhelmed with the simulations. When I have to put everything together and there are numbers flying all around. At the basis I think I get SIR AGE, then simulation work starts and I get overwhelmed.

[lampy44]

@Ana sorry I flipped it FV – PBO = fund status

[Ana]

-good on over/under. just note not to ever combine two separate plans.
-perfect on actual rate of return

those two should be all that you need. but just in case

-S:must be given, no calc needed
-I: beg of period PBO x discount rate
-R: beg. FV of plan assets x expected rate of return

AGE – unamortized is in AOCI for “smoothing”
-A:beg unrecognized prior service cost / avg remaining service life

-G: is the most trickiest for me;
Unrecognized gain or loss
– GREATER OF (PENSIONS ARE GREEEEAAATTT!!!) <10% of PBO or beg market related value>
= excess / avg remaining service life
= amor of G/L

-most questions I've come across studying have no E of SIRAGE

[Author]

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