Guest sritts Posted December 4, 2003 Posted December 4, 2003 in the 2003 study guide pg. 47 (T/F) the statement is true is this due to the ability to front load a contribution rate? The statement is as follows: A unit benefit accrual pattern of 5 % for the first five years and 2 % thereafter meets one of the acceptable accrual patterns.
AndyH Posted December 4, 2003 Posted December 4, 2003 The 133 1/3 prohibition is on backloading, not frontloading. Any year's accrual may not exceed the prior year's accrual by more than 133 1/3%.
david rigby Posted December 4, 2003 Posted December 4, 2003 To amplify Andy's response, it would be better to state "...may not exceed any prior year's accrual..." I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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