Heidi Jackson Has a Twin Brother,Phil,who Works for the Government

question 23

Essay

Heidi Jackson has a twin brother,Phil,who works for the Government of Alberta.Phil is covered by a defined benefit pension plan.Phil just turned 45 years old,and expects to retire at age 65.At that time,the pension plan will pay Phil annual pension payments equal to 2% of his final year's salary for each year of services rendered.The pension payments will continue until Phil's death,which actuaries expect to be when he turns 95 years old.For the current year,Phil will earn $55,000,and this rate is expected to increase by 5% per year.Assume that the Alberta Government uses a 10% interest rate for its pension obligations.
Requirement:
Determine the current service cost for Phil Jackson's pension for the past year (the year just before he turned 45).

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Definitions:

Political Context

The political environment and conditions that influence and shape actions, policies, and decisions.

Support Network

refers to a group of individuals or organizations providing emotional, informational, and practical assistance.

Reflection

The act of thinking deeply or carefully about something, often with the purpose of gaining better understanding or insight.

Impact

denotes the strong influence or effect something has on a situation, person, or object.