Hello, I need help with this homework. This os for retirement and benefits.

A variety of employer-sponsored retirement plans have evolved over the years. Each plan design is unique and new employer benefit strategies can be achieved by adjusting design features of a previous generation of benefit plans. The evolutionary process has been driven by the need to provide more cost-effective plans and to offer plans that are consistent with the external competitive labor market of the employer and the demographics and lifecycle needs of the workforce. Size of the employer is also relevant to this evolution. What about smaller employers: Are the traditional designs described above too complex to administer or beyond their financial capacity to support? In the following chapter, we will discuss retirement plans for smaller employers as well as some general strategies and principles relating to retirement planning. 3. Your company currently offers a defined benefit plan using the following formula for retirement benefits at age 65: final average pay, years of service, and a 2 percent replacement income factor. There is a 2 percent actuarial reduction per year for retirement between the ages of 55 (the earliest date on which one can retire) and 65. There is no actuarial cost for the mandatory 50 percent spouse option arising from age variations between the spouses. Your CFO considers the plan too costly. You decide to keep the DBP as is for your current employees, but offer a modified DBP for new hires. The new hire plan will continue to encourage long and productive service, but will reduce the cost to the company. Briefly identify and describe three appropriate design changes you would make for the new hire plan that would best generate these results. 4. An executive of a company that offers a traditional and qualified defined benefit plan is now 65 years old and applies for retirement. His average final pay is $150,000 and his average final bonus is $75,000. The DBP uses a 2 percent income replacement factor, credits for all years of service, and allows for full retirement at age 65. The executive has 30 years of service and is fully vested. Calculate the pension he will receive from the qualified defined benefit plan. 20. Suppose two persons retire from the same company and are participants of the same DBP. Their calculated annuities are the same, but when they elected instead to receive lump sums, the amounts were different. What is the most likely reason for this difference