The plan formula of Halvern SA, case data, pays each employee, on retirement, a lump sum of 2,000 per year of service completed in the entity. An employee has completed 9 years at the measurement date and is expected to complete 6 years more; the lump sum will be paid in 14 years. As a case assumption, no leaving or death is assumed before payment, and the discount rate is 3.5 %. Calculate the benefit attributed to services rendered under the plan formula, then its present value.
- Lump sum per year of service (plan formula)
- 2,000
- Years of service completed at the measurement date
- 9
- Years of service still expected
- 6
- Period until the lump sum is paid
- 14
- Discount rate (case data)
- 3.5 %