【网友复刻版】SOA珍藏真题Course8RC2004November（2），时间还有抓紧温习，拿下明年年初的北美精算师考试合格证吧！
　　5. (9 points) In order to attract and retain employees in senior positions, NOC wants to
　　introduce terminal funding by providing the options of an insured annuity or a lump sum
　　benefit for the National Oil Full-Time Salaried Supplemental Retirement Plan (SRP).
　　The lump sum will be equivalent to the net present value of the after-tax annual SRP
　　benefit. The after-tax payment from the insured annuity will be equal to the after-tax
　　annual SRP benefit. NOC will reimburse the member for any immediate taxes payable
　　under both options.
　　You are given:
　　? Pat, a senior executive of NOC, will retire with an annual pension under the SRP
　　of $100,000.
　　? The before-tax discount rate used by NOC to calculate lump sum benefits is 10%.
　　? Lump sum annuity factors at Pat’s retirement date are:
　　At a discount rate of 10%: 9.5
　　At a discount rate of 6%: 13.5
　　? The cost of buying Pat’s annuity at retirement is $10 for every $1 of annual
　　benefit purchased.
　　Gevrey’s tax rules for single premium annuity contracts are:
　　? The employer obtains a deduction for any premiums it pays;
　　? The executive is immediately taxed on the full purchase price of the annuity;
　　? A proportionate part of each annuity payment would be deemed a tax-free return
　　of the premium (“exclusion ratio”) and the balance is taxable at the individual tax
　　rate. For this purpose, a life expectancy of 20 years is used.
　　(a) Describe the issues that NOC must address in adopting a terminal funding
　　approach.
　　(b) Calculate the cost differential between the two terminal funding options.
　　Show your work.
　　COURSE 8: Fall 2004 - 5 - STOP
　　Retirement Benefits,
　　Comprehensive Segment - Canada
　　Morning Session
　　Questions 2 – 6 pertain to the Case Study
　　6. (12 points) NOC is proposing the following changes to the Retiree Health Benefit
　　program of its salaried employees:
　　? Effective January 1, 2004, the program will be closed to new employees;
　　? Salaried employees with less than 20 years of service at January 1, 2004 who do
　　not retire before January 1, 2005 will not be eligible for the benefit after that date;
　　and
　　? For all other salaried employees, effective January 1, 2005, the portion of the
　　premium paid by the program will be in accordance with the following schedule:
　　Years of Service at
　　Retirement
　　Plan Retiree/Spouse
　　20-24 50% 50%
　　25-29 75% 25%
　　30+ 100% 0%
　　NOC wants an analysis of the proposed changes, in respect of the following groups of
　　employees:
　　? Group A – the salaried employees who are currently eligible for the benefits but
　　who lose the benefits if they do not retire in the next year;
　　? Group B – the salaried employees other than those in Group A who are no longer
　　eligible to receive benefits under the program;
　　? Group C – the salaried employees who are eligible, under current assumptions, to
　　receive reduced benefits under the program; and
　　? Group D – the salaried employees not affected by the proposed changes.
　　(a) (7 points) Based on the age and service distribution of the NOC Full-Time
　　Salaried Pension Plan at January 1, 2004, estimate the number of salaried
　　employees in Groups A, B, C and D. Identify any assumptions you used in your
　　estimate.
　　(b) (3 points) Describe any special accounting treatments that are applicable for
　　Groups A, B, C and D.
　　(c) (2 points) Describe the consequences to NOC of the proposed changes.
　　**END OF EXAMINATION**
　　MORNING SESSION
　　COURSE 8: Fall 2004 - 6 - GO TO NEXT PAGE
　　Retirement Benefits,
　　Comprehensive Segment - Canada
　　Afternoon Session
　　**BEGINNING OF EXAMINATION 8**
　　COMPREHENSIVE SEGMENT - CANADA
　　AFTERNOON SESSION
　　Questions 7 – 9 pertain to the Case Study
　　我们的一生，大部分时间在为自己及孩子打拼，但在我们离开世界之前，总要留一点时间及金钱，来为那些我们不认识的人打拼，这样生命才更丰盛、才更有意义！——高顿网校谚语相赠