USE THE FOLLOWING INFORMATION FOR QUESTIONS #1-7: The company has a defined benefit plan Salary at the end of 2005 Employment started at the beginning of Retirement expected after Retirement year expected to be Retirement period is expected to be Interest Rate $ 85,000 2001 20 years of service 2020 25 years 8.0% 5 years Benefits are calculated as a formula as the product of: Service already provided Percentage Final year's salary is projected to be 2.5% $ 430,000 2 3. See the change in facts below for the remainder of this problem set. What is the gain or loss on BPO due to this pension plan amendment? 1 Change made at the END of 2006: 2 Expected salary at retirement date $ 460,000 3 1 A. $65,203 Gain on PBO 5 B. $17,663 Loss on PBO 5 C. $69,894 Gain on PBO 7 D. $16,355 Loss on PBO 3 3 1 4. What is the amount of increase in the PBO due to the service cost of working an additional year during 2007? This question has a margin of 2 error in case you calculate it with the PLUG or alternate method. Enter the amount as a positive value with no symbols. 3 USE THE FOLLOWING INFORMATION FOR QUESTIONS #1-7: The company has a defined benefit plan Salary at the end of 2005 Employment started at the beginning of Retirement expected after Retirement year expected to be Retirement period is expected to be Interest Rate $ 85,000 2001 20 years of service 2020 25 years 8.0% 5 years Benefits are calculated as a formula as the product of: Service already provided Percentage Final year's salary is projected to be 2.5% $ 430,000 2 3. See the change in facts below for the remainder of this problem set. What is the gain or loss on BPO due to this pension plan amendment? 1 Change made at the END of 2006: 2 Expected salary at retirement date $ 460,000 3 1 A. $65,203 Gain on PBO 5 B. $17,663 Loss on PBO 5 C. $69,894 Gain on PBO 7 D. $16,355 Loss on PBO 3 3 1 4. What is the amount of increase in the PBO due to the service cost of working an additional year during 2007? This question has a margin of 2 error in case you calculate it with the PLUG or alternate method. Enter the amount as a positive value with no symbols. 3