Have you read the Actuarial Study posted ? Mr. Livingstons statements are all covered in the study dated Feb 2011.
The assumed rate of return for the study is 8.0% - the actual rate of return on the plan since 2008 has been -3.0%. The plan lost 19.0% of its value in 2008.
The unfunded portion of the plans needs - if all current employee's work until normal retirement the plan would require either investment returns or contributions of $24.43 million. The study gives numbers of contributions/returns on investments needed each year to meet that requirement
The plan participants have earned (based on the assumptions) $9,304,046. That is what the plan owes them today based on their years of service today not when they retire. The plan forecasts what would be needed to pay all of the benefits to all of the current employees if they retired and live until the actuarially determined dates used in the study (from mortality table). The plan will need that additional 24.43 million in contributions and investment returns to meet those obligations in the future.
The difference between the "earned" benefit and the plan market value of $13,701,158 is not a surplus of funds needed in the future to meet plan obligations to its members. The plan defines years of service required to receive the defined benefit.
The earned benefit will climb each year as members complete more years of service.
The assumed rate of return for the study is 8.0% - the actual rate of return on the plan since 2008 has been -3.0%. The plan lost 19.0% of its value in 2008.
The unfunded portion of the plans needs - if all current employee's work until normal retirement the plan would require either investment returns or contributions of $24.43 million. The study gives numbers of contributions/returns on investments needed each year to meet that requirement
The plan participants have earned (based on the assumptions) $9,304,046. That is what the plan owes them today based on their years of service today not when they retire. The plan forecasts what would be needed to pay all of the benefits to all of the current employees if they retired and live until the actuarially determined dates used in the study (from mortality table). The plan will need that additional 24.43 million in contributions and investment returns to meet those obligations in the future.
The difference between the "earned" benefit and the plan market value of $13,701,158 is not a surplus of funds needed in the future to meet plan obligations to its members. The plan defines years of service required to receive the defined benefit.
The earned benefit will climb each year as members complete more years of service.
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