Category: Random

Yesterday we looked at a simple scenario to help illustrate how the funded ratio increases towards 100% over time as contributions are made and earnings are realized. It looked like the following, where the first number is the assets of the plan, the second number is the present value of accrued benefits, and the third…

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The last two days we’ve discussed the time value of money, and mortality. Both of these concepts are key to developing the annual contribution that the sponsor of a DB LOSAP must make each year. They are also used to determine the present value of all of the promised benefits, which is a key component…

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Life expectancy, or mortality, is an integral part of determining how much a sponsor of a defined benefit plan must contribute to the trust fund to pay for the promised benefits. In actuarial science, the mortality assumption is not just the answer to the question “how long will I live?”. It is instead more of…

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The time value of money is a core principle in the world of finance. It is also an important factor in actuarial calculations. In general the time value of money is the idea that money is money available to you today is more valuable than that same amount paid at a later date. The reason…

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When you are hired at your job, one of the first things you do is complete a W-9 and a W-4. The W-9 is a request for your taxpayer ID (SSN) and the W-4 is where you make your withholding elections. You cannot get paid until you complete the W-9 and W-4. The LOSAP is…

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Something else we see an awful lot really just comes down to paying attention! Have you had a significant life event – marriage, child(ren) born, divorce or parents die? All of these events could impact your beneficiary designation. In particular, if you get divorced, you should immediately update your beneficiary. Even if you want to…

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Another common mistake that people make when designating a beneficiary is to directly name a minor child. The volunteer’s desire to have a death benefit paid to a minor child is not the mistake at all – it is a fine idea to want to leave something to a child, niece, nephew or grandchild (for…

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In the last post we discussed the importance of designating a beneficiary. If you have completed a beneficiary designation form – great!  However, there are still some common mistakes we have seen over the years that must be avoided. Even if you have completed a form, you may want to review that designation. ​One mistake we…

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One of the main purposes of a LOSAP is to reward those who volunteer their time at the local fire department or ambulance. In the overwhelming majority of cases, this means paying the volunteer when he/she reaches the age of entitlement. However, a provision must be made in the event a volunteer dies before reaching…

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Yesterday a question came in about the March 31st deadline in the New York State law. I thought it would be worth clarifying here again. The NY State General Municipal Law requires that the fire company submit the list of members of the fire company identifying those volunteers that earned 50 points during the calendar year to…

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