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Actuaries must consider a number of factors and make some assumptions when determining a companys projected benefit obligation (PBO). The FASB requires all actuaries to
Actuaries must consider a number of factors and make some assumptions when determining a companys projected benefit obligation (PBO). The FASB requires all actuaries to make two specific assumptions when determining the PBO. Which of the following is one of those two assumptions?
Actuaries must assume a 2.5% inflation rate.
Only vested employees should be included.
Actuaries must assume 72 years is the life expectancy for all employees.
Pensions should be calculated based on future employee salary levels.
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