Question
Range Co. offers a postretirement benefit plan. Range estimates the following benefit payments for Reg Vick after he retires on January 1, 2024: 2024 and
Range Co. offers a postretirement benefit plan. Range estimates the following benefit payments for Reg Vick after he retires on January 1, 2024: 2024 and 2025,
$18,200 per year; 2026, $32,100; 2027 through 2029, $25,800 per year. Assume end- of-year payments.
On December 31, 2016, Vick has completed 12 of his 16 years of eligibility. The discount rate is 5.15%. The plan is unfunded (no plan assets). Use the following present value factors for a lump sum payment of $1 at 5.15% for n periods:
| 0.951 | 1 |
| 0.740 | 6 |
| 0.576 | 11 |
| 0.448 | 16 |
| 0.348 | 21 |
| 0.904 | 2 |
| 0.704 | 7 |
| 0.547 | 12 |
| 0.426 | 17 |
| 0.331 | 22 |
| 0.860 | 3 |
| 0.669 | 8 |
| 0.521 | 13 |
| 0.405 | 18 |
| 0.315 | 23 |
| 0.818 | 4 |
| 0.636 | 9 |
| 0.495 | 14 |
| 0.385 | 19 |
| 0.300 | 24 |
| 0.778 | 5 |
| 0.605 | 10 |
| 0.471 | 15 |
| 0.366 | 20 |
| 0.285 | 25 |
Answer the following for Vicks benefits (WATCH THE DATES!):
- Service cost for2017
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