According to the case actuary's data, an employee of Dalmont SA will receive in 18 years, on retirement, a projected lump sum of 150,000 (projected final salary included). Twelve years of service out of thirty have been rendered at the measurement date, that is 40 % of total service. As a teaching assumption of the case, the benefit is attributed on a straight-line basis to years of service; no leaving or death before retirement is assumed, and the discount rate is 4 % (case data). Calculate the benefit attributed to services rendered, then its present value.
- Projected lump sum at retirement
- 150,000
- Share of total service rendered at the measurement date (12 years out of 30)
- 40 %
- Discount rate (case data)
- 4 %
- Period until the lump sum is paid
- 18