敬爱的高顿网校众位学员们，大家别轻易放弃北美精算师考试哦，一举拿下10月的考试合格证吧！
　　Matching Employer contributions: 100% match on the first 3% of employee
　　contributions
　　Form of Benefit: Lump sum or periodic pension
　　(a) Critique the design of the new plans from the perspective of NOC.
　　(b) Critique the design of the new plans from the perspective of the hourly union
　　employees.
　　(c) Assess the current hourly plan asset allocation for the new DB plan.
　　(d) Describe the considerations in setting investment options to be offered to
　　participants in the DC ERP.
　　(e) Predict the socio-economic effects of the change in the law in Vosne.
　　COURSE 8: Fall 2003 -5- GO TO NEXT PAGE
　　Retirement Benefits,
　　Comprehensive Segment – U.S.
　　Morning Session
　　All Questions pertain to the Case Study5. (6 points) NOC has just established a global subsidiary. Employees of the subsidiary
　　include transferred NOC employees and third-country nationals.
　　(a) Explain the issues affecting a retirement benefit policy for permanent and
　　temporary transfers between countries.
　　(b) Assuming that global comparability of retirement benefits is a corporate
　　objective, describe the issues NOC must consider.
　　COURSE 8: Fall 2003 -6- GO TO NEXT PAGE
　　Retirement Benefits,
　　Comprehensive Segment – U.S.
　　Morning Session
　　All Questions pertain to the Case Study
 
　　6. (10 points) NOC’s CEO has proposed an asset mix policy for the Full-Time Hourly
　　Union Pension Plan to achieve the following objectives:
　　?  Minimize short-term volatility of the company’s pension expense.
　　?  Minimize the long-term cost of the plan.
　　Proposed Asset Mix Policy
　　Domestic Equities (mostly oil companies) 60%
　　International Equities 5%
　　Domestic Fixed Income (short & medium-term
　　treasuries)
　　20%
　　Real Estate 15%
　　(a) Critique the proposed asset mix policy.
　　(b) You are going to perform an asset liability study for the NOC Full-Time Hourly
　　Union Pension Plan. Describe the inputs you would need and the process you
　　would undertake.
　　(c) Explain how the output of your asset liability study would be used to recommend
　　and justify an asset mix policy to the CEO.
　　COURSE 8: Fall 2003 -7- GO TO NEXT PAGE
　　Retirement Benefits,
　　Comprehensive Segment – U.S.
　　Afternoon Session
　　All Questions pertain to the Case Study
 
　　7. (8 points) NOC is acquiring TechCo, a private company in the country of Xanadu.
　　Xanadu has similar tax and pension legislation rules to Vosne, with the following
　　exceptions:
　　?  Employees can contribute up to $5,000 per year to a DB ERP and $5,000 per year to
　　a DC ERP.
　　?  Employee contributions are tax-deductible to the individual.
　　?  Investment earnings on the employee contributions are not taxable until withdrawn.
　　?  There are no PPAs.
　　Xanadu sponsors the following government-provided retirement income program:
　　?  Both employees and employers contribute 5% of pay every year.
　　?  The pension provided at retirement is equal to 50% of the best 3-year average
　　earnings, provided the contributory period was at least 30 years. A proportionately
　　reduced benefit is provided if less than 30 years of contributions were made to the
　　program.
　　高顿网校之名人名言：一个人的理想越崇高，生活越纯洁。——伏尼契