What is the company projected benefit obligation

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Reference no: EM132664142

Big Three Industries has a defined benefit pension plan that specifies annual retirement benefits equal to:

1.7% x Service years x Final Year's salary

Randall Pearson was hired by Big Three fifteen years ago. Pearson is expected to retire after 30 years of service. His retirement is expected to span 20 years. At the end of this year, 15 years after being hired, his salary is $65,400. The company's actuary projects Pearson's salary to be $94,000 at retirement. The actuary's discount rate is 8%.

PVA Factors

PVA, n=15, i=8%      8.55948

PVA, n=20, i=8%      9.81815

PVA, n=25, I -8%     10.67478

PV Factors

PV, n=15, i=8%        .31524

PV, n=20, i=8%        .21455

PV, n=25. I =8%       .14602

What is the company's projected benefit obligation (PBO) at the end of this year with respect to Randall Pearson?

Reference no: EM132664142

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