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Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 12% * service years payable at the end of each year. Angela Davenport
Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 12% * service years payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2007 and is expected 2041 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $90,000 at the en company's actuary projects her salary to be $280,000 at retirement. The actuary's discount rate is 8%. (FV of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the company's projected benefit obligation at the beginning of 2021 (after 14 years' service) with respe not round intermediate calculations. Round your final answer to the nearest whole dollar.) 2. Estimate by the projected benefits approach the portion of Davenport's annual retirement payments attributab 3. What is the company's service cost for 2021 with respect to Davenport? (Do not round intermediate calculati answer to the nearest whole dollar.) 4. What is the company's interest cost for 2021 with respect to Davenport? (Do not round intermediate calculat answer to the nearest whole dollar.) 5. Combine your answers to requirements 1, 3, and 4 to determine the company's projected benefit obligation a 15 years' service) with respect to Davenport. (Do not round intermediate calculations. Round your final answe dollar.) $ 99,192 1. Project benefit obligation 2. Annual retirement payments 3. Service cost 4. Interest cost 5. Projected benefit obligation
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