| Accrued benefit cost method | ||||||||
| Employee | Attained Age | Entry Age | Years of Past Service | Salary | Salary Scale (AA) | Salary scale (65) | Projected salary | Projected benefit |
| B | 50 | 30 | 20 | 60,000 | 7 | 14 | 120,000 | 84,000 |
| Benefit | 70% | |||||||
| Individual level premium | ||||||||
| Employee | Projected benefit | survival (aa) | discount (aa) | annuity factor | PVB | |||
| B | 84,000 | 0.6 | 0.4 | 10 | 201,600 | |||
| Entry age normal | ||||||||
| Employee | Projected benefit | Entry Age | Survival percentage | Interest discount | Annuity factor | PVB | TEBLA (EA) | Entry age normal cost |
| B | 84,000 | 30 | 0.1 | 0.1 | 10 | 8,400 | 11.9 | 706 |
| Entry age salary scale | Entry age salary | Normal cost percentage | Normal cost | TEBLA (AA, w SS) | PVFNC | PVB (AA) | Initial past service liability | |
| 2 | 17,143 | 4.12% | 2,471 | 11.4 | 28,165 | 201,600 | 173,435 |
Last Updated on 12/13/98
By Jack L. VanDerhei