The document discusses new regulations for cash balance and hybrid pension plans. Key points include:
- The regulations, effective 2016, apply to "statutory hybrid plans" and change allowable interest credit rates.
- Interest credits can now be set differently for different employee groups, based on actual returns from subsets of trust assets.
- The minimum interest credit floor was lowered from 4-5% annually to 3% cumulatively. Relief is provided to reduce existing higher floors.
- After plan termination, interest credits must now use the 2nd segment rate from the last pre-termination month, rather than a 5-year average.
- Allowing different interest credits by group and the lower 3
This is a presentation that I put together while in college to educate other students about 401k's. My intention was to get them to participate in a company 401k if offered at their starting jobs. Originally the presentation had an intro slide show of people moving from college through various stages of life to retirement with the Rolling Stone's "Time is on My Side" playing in the background. Unfortunately, Slideshare doesn't support embedded video and audio, since that was probably my favorite part of the presentation.
In this powerpoint, we explain the cost of a payday loan including the recent FCA price cap and how the daily interest and cost per £100 borrowed impacts the level of APR
This is a presentation that I put together while in college to educate other students about 401k's. My intention was to get them to participate in a company 401k if offered at their starting jobs. Originally the presentation had an intro slide show of people moving from college through various stages of life to retirement with the Rolling Stone's "Time is on My Side" playing in the background. Unfortunately, Slideshare doesn't support embedded video and audio, since that was probably my favorite part of the presentation.
In this powerpoint, we explain the cost of a payday loan including the recent FCA price cap and how the daily interest and cost per £100 borrowed impacts the level of APR
Lucas Financial Consulting Ltd
James Caron
BA, LLB, QFA, FLIA, MIIPM, RPA
jamescaron@lucasfc.com
087 648 6081
Scheme for GP’s who have GMS Income
Automatically enrolled, transfers not allowed
Not Superannuation/PPP/OPS/Trust RAC
What it is though is complicated
Administered by Mercer
Investment Options are
Main GMS Fund, bonus applied 31/12 which is a % of average value throughout the year and calculated by reference to gains/losses averaged over 4 years. From age 55 can switch out at end of quarter but cannot switch back.
Other funds are Cash/Bond available from 55
In this presentation we discussed in simple way about fixed income, fixed income Investment options, which fixed income option is best, and Fixed income investment avenue and about more tax efficient investment option.
Why Shouldn’t I Invest in a Fixed Deposit?Sachin Karpe
Why Shouldn’t I Invest in a Fixed Deposit? Sachin Karpe Explains Why shouldn't I invest in a Fixed Deposit? is the most common question asked by the investors. Will you invest in a FD of 10k, if the net return will be 6.3% instead of an overall return of 9%?
Investment Seminars - Where next for Credit Union Investments? April/May 2014 le chéile Group
Investment Seminars - Where next for Credit Union Investments? April/May 2014
Nationwide seminars with speakers Adrian Missen, BCP Asset Management and John McCormack, Head of Investments at le chéile Group.
Stewart Kaplan of the Thrift Savings Plan Training Office will provide an update on the current status of the Non-Disclosure Agreement (NDA) and the updated rules and regulations of the Thrift Savings Plan (TSP). The 90-minute session will provide an overview of using myPay, contributions, using the website calculator, tax-deferred versus Roth IRAs pros and cons, the value of the L Funds, and death benefits. Register and join webinar: https://learn.extension.org/events/2361/
Lucas Financial Consulting Ltd
James Caron
BA, LLB, QFA, FLIA, MIIPM, RPA
jamescaron@lucasfc.com
087 648 6081
Scheme for GP’s who have GMS Income
Automatically enrolled, transfers not allowed
Not Superannuation/PPP/OPS/Trust RAC
What it is though is complicated
Administered by Mercer
Investment Options are
Main GMS Fund, bonus applied 31/12 which is a % of average value throughout the year and calculated by reference to gains/losses averaged over 4 years. From age 55 can switch out at end of quarter but cannot switch back.
Other funds are Cash/Bond available from 55
In this presentation we discussed in simple way about fixed income, fixed income Investment options, which fixed income option is best, and Fixed income investment avenue and about more tax efficient investment option.
Why Shouldn’t I Invest in a Fixed Deposit?Sachin Karpe
Why Shouldn’t I Invest in a Fixed Deposit? Sachin Karpe Explains Why shouldn't I invest in a Fixed Deposit? is the most common question asked by the investors. Will you invest in a FD of 10k, if the net return will be 6.3% instead of an overall return of 9%?
Investment Seminars - Where next for Credit Union Investments? April/May 2014 le chéile Group
Investment Seminars - Where next for Credit Union Investments? April/May 2014
Nationwide seminars with speakers Adrian Missen, BCP Asset Management and John McCormack, Head of Investments at le chéile Group.
Stewart Kaplan of the Thrift Savings Plan Training Office will provide an update on the current status of the Non-Disclosure Agreement (NDA) and the updated rules and regulations of the Thrift Savings Plan (TSP). The 90-minute session will provide an overview of using myPay, contributions, using the website calculator, tax-deferred versus Roth IRAs pros and cons, the value of the L Funds, and death benefits. Register and join webinar: https://learn.extension.org/events/2361/
Generational Retirement Trends Study - 2015T. Rowe Price
T. Rowe Price's recent Retirement Saving & Spending Study revealed that across groups of 401(k) savers, millennials are following better financial habits than those of baby boomers.
“We think it’s encouraging that millennials are so receptive to saving for retirement and that they are generally practicing good financial habits,” says Anne Coveney, senior manager of Retirement Thought Leadership at T. Rowe Price who led this research study. “When they have the means to do the right thing, it appears that they often do.’
Throughout this presentation, we uncover how different generational workers are saving and spending, and indentify the statistics that differentiate these populations.
Pension Options for Small Business OwnersParker Elmore
New Comparability & Cash Balance plans offer small to mid-sized professional firms the opportunity to target large tax-deferred pension contributions to the owners while providing modest benefits to employees.
1 FINAECON 340 Bank Portfolio Simulation Guide and .docxhoney725342
1
FINA/ECON 340
Bank Portfolio Simulation Guide and Worksheets
Version 1.3
This document is intended as a guide for the completion of the five rounds of the simulation. Here explanations
of calculations and samples of inputs are provided in red font with the description of the assignments from the
course modules in black. Use this as a guide to completing the tables in the templates your instructor provides to
you.
Assignment 2-2 (6-Week Class) or 3-2 (12-Week Class): Initial Bank Portfolio
Overview
In this course you will be asked to make decisions involving the management of a bank in a multi-phase market
simulation. The market simulation will consist of five rounds. At the beginning of each round, you will be given
the probability of possible states of the world that will subsequently occur during that round. You will then
make your allocation decisions based on the returns possible in these probable states. At the end of each phase,
you revalue your balance sheet, calculate your institution’s profitability for the period, and make new
allocations for the next round. Please note that the recalculated financial position of your institution at the end
of each round will become the starting financial position for the next round. The goal of the simulations is to
maximize the return to your shareholders in each phase. Your grade in each phase will be determined by your
performance in the simulation, the rationale you provide for the allocation decisions you make, and short
answer responses to questions related to the coursework.
In Round 1 you are asked to allocate initial equity capital among alternative liquid investments: cash, one-year
Treasury bills, 5-year Treasury notes, and 15-year Treasury bonds. Your goal is to maximize return and
minimize risk in this start-up phase until you are able to generate riskier assets, such as loans, and leverage your
initial equity with debt.
In Round 2 of the simulation you begin to diversify the composition of your assets, choosing among types of
loans with varying levels of risk and return. You can also grow your assets further by adding debt with
alternative sources of liabilities, including deposits and borrowed funds. Note that different assets and liabilities
have different returns and default rates based on the state of the world that occurs.
In Round 3 new capital requirements are imposed by regulators that may force you to made adjustments in the
risk carried on your balance sheet, including possibly taking some risk off balance sheet.
In Round 4 of the simulation you can expand your operations internationally with new asset and funding
alternatives.
In Round 5, the final round, you conduct a financial analysis of your bank and assess its performance.
Action Items for Round One
1. Assume that you have been granted a charter to open a bank with an initial capitalization of $1,000,000.
Before you begin to build a loan p ...
FinanceTest ISummer 20191. Using the following data, prepare a .docxericn8
FinanceTest ISummer 2019
1. Using the following data, prepare a three-stage ROE decomposition (DuPont Analysis) for Home Depot.
Return on equity (ROE)
12%
Sales
$5,000
Current ratio
2.29
Dividend payout ratio
25%
Dividends paid
$100
Total liabilities
$4,000
Accounts payable
$600
My work:
1) ROE = Net Income/Sales x Sales/ Equity (or 12%)
2) ROE = Net Income/ Sales x Sales/Assets x Assets/Equity
or …….(400/5,000) (5,000/ Assets) (Assets/Equity)
3) ROE = (Net Profit Margin) (Asset Turnover) (Equity Multiple)
Side notes:
(Accounts Payable) (Current Ratio) = 1,374/ 600 = 2.29
Current assets = 1,374
Current Liability or Accounts payable = 600
Current ratio = 2.29
2. Your task is to update your firm’s long-term financial model (that was originally prepared last year). In financial modeling, a key assumption involves the firm’s dividend policy, as typically specified by the firm’s payout ratio.
You recognize many differences between today and last year.
Last year, the Treasury Yield Curve was upward sloping. Today, the Treasury Yield Curve is inverted. Last year, the Fed was expected to raise interest rates. Today, the Fed is expected to lower interest rates. We also know the following:
TodayLast year
Forward P/E
16
20
Equity Multiplier
2.50
1.95
Based on the differences described above, would you expect the payout ratio in this year’s financial model to be higher or lower than it was last year? Briefly explain.
Based on the differences above, I expect that the payout ratio in this year’s financial model to be lower along with short term headwinds. The earnings per share is going down and the price is taking a hit. Also, assets are leaning towards the heavier side.
3. Glencore will need to have $3,000 on June 20, 2023 (four years from now) to purchase new equipment. To accumulate this money, it will make four equal investments, with the first of the equal investments beginning one year from now.
a. If Glencore can earn an annual interest rate of 10%, how much must it invest per year?
My work:
P1 = 646.41 x 1.10
P2 = 646.41 x 1.10
P3 = 646.41 x 1.10
P4 = 646.41 x 1.10
Invest per year = $646.41
=PMT (10%,4,0,3000,0)
b. After presenting your findings from the above calculation, Glencore’s CFO asks you to consider an alternative scenario. Both changes are to occur today and will continue throughout the four years. You are to consider both changes simultaneously.
1. The interest rate will increase today and remain at that higher level.
2. There will still be four equal investments, but the first investment will occur immediately.
Without doing any calculations, how would these changes (considered simultaneously) affect your answer in part a? Using no more than 50 words, carefully justify your response. Do not write more 50 words.
My response:
With a higher rate (ex: 12%) Glencore’s money is working harder. If less money is put down, then more money will result in t.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...
Cash balance and hybrid plans - final and proposed regulations
1. Cash Balance & Hybrid Plans
Final & Proposed Regulations
Minneapolis Pension Council
October 16, 2014
2. Outline
Brief cash balance overview
What’s new in the regulations
Surprises
Issues & answers
1
3. Overview: What a Cash Balance Plan Is
It’s a DB plan that looks like a DC plan
Big DB deductions, DC-like simplicity
2
4. Overview: Cash Balance Plan Example
DB/DC combo
Common for professional firms
Enables large deductible contributions for owners
5. Overview: Cash Balance Plan Example
Age
2014
Pay
Cash
Balance
Credit
PS &
3% Safe
Harbor
401(k) &
Catchup Total
Dr. F’stein 60 $260,000 $230,000 $34,500 $23,000 $287,500
Igor 40 50,000 1,500 3,750 whatever 5,250+401k
Inga 30 30,000 900 2,250 whatever 3,150+401k
DB/DC combo: cash balance & profit sharing
This example is for a PBGC-covered plan, Frankenstein Mfg. Inc.
Gateway here is 7½% DC; Igor & Inga get 3% cash balance credits
A PBGC-exempt professional firm may need to limit DC er contrs to 6%
7. Overview: PPA “Statutory Hybrid Plan”
6
Definition DB plan where portion of accumulated benefit is:
Current hypothetical account balance
(cash balance plan); or
Accumulated percentage of final average pay
(PEP plan)
What you get Whipsaw relief
Age-discrimination relief
What you give 100% vesting in 3 years
Interest credit can’t exceed “market rate of return”
8. What’s New: Final & Proposed Regs
Effective for plan years starting in 2016
Applies to statutory hybrid plans
Changes to allowable “market” interest credits
§411(d)(6) relief for noncompliant interest rates
Different interest credits for different groups!
Interest credits after plan termination
7
9. What’s New: “Market” Interest Credits
8
Type of Rate Comments
Old (2010)
Maximum Floor
New (2014+)
Maximum Floor
Fixed 5% 6%
Actual return
on assets
May now be based on a
subset of trust
3% cumulative 3% cumulative
Mutual fund
or annuity contract
Broad US or
int’l market fund
3% cumulative 3% cumulative
Notice 96-8 Treasury
From 3-month + 175 bp
to 30-year + 0 bp
4% annual
or 3% cumulative
5% annual
or 3% cumulative
Segment rates
417(e) lump sum
or 430(h) funding
4% annual
or 3% cumulative
4% annual
or 3% cumulative
CPI Plus 0-300 bp
4% annual
or 3% cumulative
5% annual
or 3% cumulative
Other
Only as announced
by Commissioner!!
10. What’s New: §411(d)(6) Relief
Anti-cutback rules: each pay credit includes all
future interest credits
So, couldn’t reduce future interest credits
Except to comply with new rules
For example: 3½% cumulative floor could be
reduced to 3% going forward
Option to preserve pre-amendment balance
with old (noncompliant) interest credits
9
11. What’s New: Interest Credits by Group
Interest credit = actual return on subset of assets
Can now set up CB plan like a target date fund
Asset pool requirements
Diversified
Employer stock & real estate < 10% of pool
Market value of pool =~ benefits (account balances)
10
12. What’s New: After Plan Termination
PPA: post-plan-termination interest crediting
rates equal 5-year pre-termination average
For a market-based plan, PPA rule produced
odd results at the end of a bull or bear market
May now use PPA 2nd (middle) funding segment
rate for the last pre-termination month
11
13. Surprises
Different interest credits for different groups
3% cumulative floor < 4% - 5% annual floor
Specified rates only!
§411(d)(6) relief for future interest credits
12
14. Issues: Interest Credits by Group
This will expand the appeal of cash balance plans
Need to ensure that it’s nondiscriminatory
Will need to track participants through different
asset pools and crediting rates
It will be a recordkeeping and testing challenge,
but worth it
13
15. Issues: Maximum 3% Cumulative Floor
Could demonstrate that it’s always <= 3% annual
And 3% annual < permitted 4% - 5% annual
Or...use §411(d)(6) relief to reduce floor > 3%
14
16. Recap
Brief cash balance overview
What’s new in the regulations
Surprises
Issues & answers
Questions?
15
17. 16
Contact Information
Mark Schulte, FSA, EA, MAAA
marks@vaniwaarden.com
612.596.5971
Jim van Iwaarden, FSA, EA, MAAA
jimvi@vaniwaarden.com
612.596.5961
Van Iwaarden Associates
840 Lumber Exchange
10 South Fifth Street
Minneapolis, MN 55402
www.vaniwaarden.com
1.888.596.5960