ࡱ> `!D;Efz7M4pH D"S( ;xwt8zY;;ڙ"Z-[`:Bh C^z(-z;^ }{=y|<3] !,$E)e aL-TJ"Vfe~6gx{df|,ӎdRvf~YL_2}8<ˇU *+?˃dIJ 2FY18;Kea9K!fYqڸBVSjŬ8273f̑xLf;f2ƕ3{bfvgfcCfL34)~aď30+x]8]Õ\}dZɽj_;$tȖPW_͈`wVf[jfKf}4fU8fIpf^L3=g旘\fdLw&/3;#)S7d1u%3tmk]wOOLn[WlM`f0t`ąP;l]fv3{uP"DW2D?a~<1y<\ɜmˬm̏mƆ͙6LyC4tcJz3CF4 e,01цyLa9XvBqscxG$Uf$3XL7nv 3Ÿh5N`F <'c_ؙi`lT2bRAT9Ԓigj45540ULݘ,S.jXLci6aZ|4b3w7+=`,n7cK=xYz,> $a&]VFj[S4m8EpQ|s;gj|.s6;W|gf|Gf[|;fA|+fX|sTH(ќIIhø:2LTO 0a y31_~X A\LXeFp^3&B/2=2mW2-3?&Ncj%g*%0y//IX0Ď2-1%cE͙90K0Kwc/ݟ]z(ӭHs LӘv1mK/!BS0" GLQIVR!s;i+kIkI3I3I̱<揤Τ̴̆VLARsJ.ќٝܒٜܚY 09܍$ Jc%eZ&f%f*%bҒ37)5cNV4\-xB.+%ژ9Y͹:7[&7wޔ2eqME4S}n7Ԗmu2ZƦQ\]i>WѴ+keMsia*L<`&7gJMM鸍lsMS<7MSo2ŻLA |ʦ|4#0l6A/ni;!6x9nnk x93Qs<>e6~hn_[tǂ6Xcɒ,Cqe8f)?ZF6;6&0vl i,1Kc|R_T·,irY%28g'vؒZ]xbö-u`Zx:^L9&XlxEYxE,*l9Y6~Y(2uG-QK;5E -Q-K&lL%[iAz E b =7bo߰'/=z}v;|b.b{of͖>)a~ž4}b1A;MzBsL~4T 55C}L=P'Sje~E2T`~1yh)m1uBL SSt=6AL52WCzsU5D̵Qws}42g)hZn֙_NL׼aތ#Out 5G%~s&nf.r(qМW&f?\ kqXeJ ߹o\>t㾘A+r22.Wߌ r?pgqZ(N)95%u+1}ܻ!o1OQtlW:)&8Wuqw} \A<5P @+= @|1灡S`8V /8 5yQ?n샻㟂9xpl'kJx^0 / &A;^,& &2o"kNm`V`:0G pfPA5)y ` J n@IY(>8#Y!E"P0Ƀ>)A/Vt'.(3Za^ٜ}q[5p Xo&kV>g/W:?lG#ף~GUUQE |e(?UA y?uwBhS4A[5!5tz>A5>PQj1*FQ@7*qL?6}hX*\PwT8*P@Y0_g=}?_§q?^wn5mv+r{˸~OGs")K9&P T@(UX _%p@,nÕxΓ7%~ k7E2ٺ7l;g%v(;׺`]`o[sYk,mRzJxQS[U\30m;ǵqlO{;kcq?b4 ϵl x4͖|8 .B^dKm-y,Nl q&qj,aSrT\ ƕǚ8")~gkۺ 0w`6 OClp76W-;mpgzĚ[*5 n-Z+˭YnuWr]gP4/,NΚްi iӎvVfrٿj/,NWRH11ċU3}J?yqE\bSΗ Y\1]cpt3nnǭ]Sz)+=O/ӓt eOO[x|8݃OKB H7{0t5~t&18"CŸS(6>HoK~pv\#}N8:+۴A^|ZO|8-HkiUԴ4<&f0MuO{uI; p%_ޡ;tIJ\ l4F#P8sQ1u[lGTS #QPhET41}k ;Aw*tΡSv]or;EZ4ŮCcfoP?{en2"d:A3co؇h}"i }=lߊEn,*/Dħ "M)7KVn6I61]b /wR[Ɲ'rg`-ŝNW=!"wWт׉NBL D?)xX>bElp9.%bnهwW' ׷ĕ=p?@n~Xq}~Wbاq5^%/qeϹ:pmx=/ګ:x!eoٛ%~^AjHlmp?p+q]8ƢgZDk#Zϸ]x+᪊G2~.EyME\1,},w>n7Z+sp)\i{)ab: s_>qOЫy)$n?z ,@ơgqЋnk>E_ = TDy;nE] gq]Oڮ\#Y.ukuvzr}\~|n+sᆸqC]e|WznK rF\E$ڃr\Qk| *rQ=Jt5A&ҹ#?N4HGJ)C_<{|šؒߑ㿥xToRYF9<'ϑwtqSg <[ep*wFgC9dk({Ezw w⽳Gޡz邞{ڢf蚧!:멃zjWOeS ! ƴ=MQMOkTΓ(=Ñ3i<Y=sSzr%<Ŝʣ#`Gu+6{Xc''{8ݓk{*v+*QqUjwYwg8I8SN,sS\ĕ_.GݽQEwT qE*(]%NF6wc{_M؎l/yh׈y]h7ꭈv{ޖ訷+:N{Ag9~t=]q^-o45G^~-xJRuAWD]ST?@v7A߷FjjjjO}}6ͷ%})|}_/+񱾺|"999?܊ߜܒ_܂ܔ-ypbɫUתZU4pV}U|U}sU}T9p,}|!^fp\T[|T|ɪc'w }12?|Zvn/+U=DN #/}Mn>$A;ə\r2:Ad#Y.D *+ =I薯KB}AtWU!n.Z+ozHYLY,@S&)iJ?VPk}͔rJIIDQamO1)zcej4=ՄFϩ95eQ2zjT.JKmSۡR=:ŦNG8u+*I!'E!B aQeY(B!33WV+Ur,_R% ͜#;e3o4V } C,(\7cȕb(dκ'|gp~;t+ֺ| \n&__7˧F'ۓ罱#ykX>&v"Ocll^[֭?~ot׺+m7cWcWbN9 c;bGcGarp~~?E?sOU|~#Cw;O9[|G>[G%:X_Lϐ~ yC <>;|9I0_ٰbW5lv-_ɰ`Xė53 3ya*dV(^ "Г? J˿ÍFVE6f+4$JckО7t& 07& t2ư 6l" Iii8GHMsRdXjz Ii( :4ΐM`t/.FoM Gh -oNkƆh;Gk FkT/5PaA-l1hО&p#2# _Ъ;"h1utqiG5Nt1aLShQ1ڷx5'ȯƭdqYbE`{281%ÌO$؋t2v#H#cRؖk׼3ї-a@/>ӳ/+= bj;o+\-wt5]-7ܥ Wi:t :0N1 +䍠^tAEMd4k8@4l#g u<03!_ #8|BCH08sL2!~/$83%H5RӸ1Azpo3HkK*p]+,cwhquWPq;4x\ Nt!az0$%$ɴěi&3M'FTeL_؏l6 WYeE6ΐдeZEΙ䡩2 _L܉v`nI$٤ mH s{RלC~4w!=H+s/ߜ^RGeE+h>Gͧ19o#=x"i9rtaǩM:۔Iqvt7Mii@~5LE:tN0ѥ7TLwHb=k|G_{g!} oGuxNQOʚQ 4 Yr2bYIUm -Qb TkJ-EToG-ayNKY^Qʹ|U,ŴUDe.-̟h';晟GtdN/ҙQ:ϼ.0oKKJ8f+,wyr  ć[V [Dy,Agi)qߤQDMIi7,kt)\&7b_f,h7 ^&9qF(\&mE$9eC6CжnC٦Mdm,YbA[3OZǍ"MƑqIzLR9n[E2㶁,o|V qh>^$"0y܏[C0I̽;n$YlA0H>'}>ik_FZבHwpicFt}mN^د#ؾ|o'2q# WCyP S>ܳ `Enb|RCꉓIeqI$qq;Mmlllvv,[;]VY@$Ge.E{Ufk/о<=ռ(NkcXCQS5lBrda4@NTMܰnaC@_&/&?G͸jae5}ap\w05Pia,u; SG?oj L'=`'~S2:!uBoPւ%υ lJu[hOQUOwW/QgGr^4/'P.OhqBN~O ^€BA,a4WS> `1VքOS!K%n0s`{ О48Po q3(\wCK<о'5.5!}@25 |PA Z DbZ&Eh:q ׀15`lP& 71uBc 4; mDGc"Й`nZjz@폈IXА'鋈NsD{hEAeVԢ*(CQA5/{aԮR !"2( 2RTS| /H k^dF+$ *6CR,s_i`"9 B|j%^*Ɓ!O"~䭢B*zOR ĤlADeMGJT U!B )DtCvcK)"UH-P4K4m ]@O7,Ԗ&GɅ V*8e!ˠ-'AeU^)/B U/PnorI}傐'2fO-|,$Ɍ`0Y0/ϴL}3S|pq3_D̿g^3TϙGuUsIu<)*ʾPS!& gU>*jOah V}2 *y# ڱ*WAm-Tb'cG4;E øa`8vj$΀ 40зx-a$Ѱ~3ʃz[0 wm`&ml>p\* Bj2T]@i*RAi]PY;vYTFW9B~/*JU ЗcH -y?`,zGn28ys}SaLp0nm1^tpڏ";>~;/8fB}& E= gLr0-jn qSCԀx7 &+N\C ts/CZpBN]{ B?ЀàK;`\G<3v\;l*KV}AUP<ڋ~S-GT 9|KT:IhoDx:?c?7Y94f%l2@&8v2U4cOz->' HJYg{L'zE2K:f?\L1LP"d1MD`g-3UUBrByM|/\UjG zIIʝF򪺢:II4:U#W5u5g9BXx0 hoW9ꅊ ꥊ͊ԅ\IE#-WVV* \*+ZʦB{e0NWGes`$jg^,fiLYǙsf&ɶožTb7%VndsU{o[4%w{}?70':h'NBq4T C xrGP!w-!ԊSs\gsQ;ESh-7ڣs\soA1ul:>ٶx gfL\]%v?p4pdx.FZʸTT DUJaUbejG)|Ge_UY/l=yr8R1*Wb:R["4RJQ-Jс|AD#ɱdK>27dG}Tќ N—ЍG[B_&c<_8'/oO cυr߳ jK@%]a=S7v35n-|+rMlX=lu& U3 #dްh.k.*(/ je;CkXY߭rV9;-xj ;X%Sv0dʖf d} em e dMdNpTVpFf7\Y@4P.Xh?ѿ=+빰ư#zG^}r}հ arHj79a3¦s軅=yamaMUo K pS0ab?S,pBA~'DtHP~"'? m!塭 j@hqP꿁`䋡oqlS y|ml[hϊ!/"ύ]$1v\rO#:6<<b¿SW>O7 tS> `1V/ ̄x^(/􆱽]C{!ip(3l5]wCK<о'5!u!}U@}P4:M @3@kV;@(I&&ԀarUꀆPo˜:]oBJLvą6czFl6fLĊ`nĖEP[ CjD̎912IDb>Gt WRT5cԊz1*(A^̷*( 06!ƬH+bJD<Tj A) 2ЯaAW-[C\;@K(z^hEQt腊Cѫw(ER, RӣOX!/b4*ER-W Q*ё&ehQY?:^84HeBmmȫx&e0Z,b u';aR06FW21`!@;BD>`0 )G) VqJE4eq\H). j!ߢ|["~ pTy+j:.EmG.P(FC+< 1[-*Y EٙQNf\T"3 JaAEgQL~LZT>8G]dĨ"FQykcsi#(y<)٧}c/&d H{cEBjA{jP$r *y# ڱ o[YRvn `8DZ "Gq͉fC>Z~#̳1Ԗ B}aɰdg<7>2yPo cZ+ tyZDncG'ȯ¸!&C#R$Bq)9#Y'H G9rXDP*P+}Y0& gM[E#;D: A2˜8`. cցԏiasPОG;. 9P e3䟡Dp,LsjnV QDpS`\5q=\:D *r}!5p5cB.:&w98S'V/5h@ ~&i7j:ŚAxf,s4#8C;4jZzU]UOVMV}I5E-E_GݑGO򯅏AEN fr@(M YdЀ:B?2QL^*MEZ ȏ-RAxN9 T+HVh'z UȊiwjZ>"M[ &:U*AF 51y3kIz=F$uSHwB4b(_󄯫hc5pGo+z A?ίU'3|#ޫG9rO(EꑦB"L$f' Ҝ"*פ54D,E5#P=^jH%Ƞ-frlCFvG۟mՖak%w"&<$#Db̑KRALL̀fzd!Xy(ZAJ5J)FuTFUU֊*lS+GET,U8Jq+jMp ][Q*:C]JQ?ZhRt;MD~"Fo8=7(zpH>JD4Dy'JC+b60[8U/|ML>BwNTWSH~^7FJ]7mrU,Kؐ+a+bw26wx ,{dE3?`SDdAa6FzÚ3r U`Q^6-4$!J'\VY,( /0(  0;[0 0 000$([\{b00 000000000  0=] 0 0 0000 2 3 !A0C0E0G0I0c00000000000000000!%),.:;?]}acdeghijklmnop0DTimes New Roman0B 0DVerdanaw Roman0B 0" DMonotype Sorts0B 00DArialpe Sorts0B 0 C .@  @@``  @n?" dd@  @@`` ( |EEON+ MF   F 5QRVWXYZ[\/X$2$Efz7L; 0e0e     A@  A5% 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||@8`ad g4BdBd B 0ppp@ g4KdKd B 0Hp@ pp<4!d!dLpC 0,-<4BdBdLpC 0,-"ʚ;ʚ;<4ddddL%F 08r0___PPT10 2___PPT9/ 0? %0Introduction to Pension Plans and the Work We DoGeorgia State UniversityWhat Is a Pension Plan?The Answer Varies Depending on Whom You Ask Reward for long and faithful service Deferred wages Payment of moral obligation to provide financial security to retired employees A way to facilitate the departure of employees leaving the company&,,d8<Designing a Plan  Why bother?}Some Reasons for Having a Plan Meet Retirement Income Objective Competition Tax Effective Social Responsibility Labor Unions* ^ ^ Basic Types of Pension PlansDefined Benefit (DB) - Formula Determined Benefit Benefit is defined e.g. $25 per year of service, payable at age 65 Defined Contribution (DC) - Separate Account for Each Participant Contribution is defined e.g. Employer will contribute 3% of your monthly pay, into a 401kx2pZDpZBpZ[pZ2=B O%#Basic Types of Pension Plans - contHybrid Plans Defined Benefit Plans Designed to Look Like Defined Contribution Plan e.g. Employer will contribute 3% of your monthly pay, into an  account (held by the employer). Employer will credit the account with interest each year equal to 2%. &  ;, DB versus DC?DB Easy to plan retirement income Employer holds all of the risk Benefits loyal workers with long service Sometimes hard to understand DC Hard to plan retirement income Employee holds all of the risk Benefits transient workers with short service Usually easier to understand]be9NPension Actuaries  Where do we fit in?((Usually, Pension Actuaries will work with DB (and Hybrid) plans more than DC plans Many Pension Actuaries also have an Enrolled Actuary (EA) credential EA-1 Exam (can substitute SOA Course 1 and 2) EA-2A Exam (4 hour, multiple choice) EA-2B Exam (2 hour, multiple choice) 6zz<-Who do we work with?$ Employer/Plan Sponsor Often these are large, Fortune 500, companies with many employees Examples of WW Clients Attorneys Public Accountants Trustees & Investment Managers Governmental AgenciesB`Y`R`YRH1What Do We Do? - Overview,Basic Tasks Determine the value of employee benefits Ensure plan compliance with tax and government regulations Formulate strategies to keep employee benefits secure Annual Work Valuations Benefit Statements Government Forms IRS (Internal Revenue Service) PBGC (Pension Benefit Guaranty Corporation)t PP P/PKP  /K  R3What Do We Do?Special Projects Studies Plan improvements & design Plan cutbacks Windows (temporary incentive programs) Forecasts Plan Terminations Union NegotiationsNZ%Z%g;DActuarial Analysts  Who are they? Entry level associates Serve as assistants to more senior actuaries Are expected to take exams Are exposed to a wide variety of projects to gain experience h<BActuarial Analysts  Tools we useMicrosoft Excel Company-created software Our good ol TI and HP calculators Actuarial Tables Microsoft Access Microsoft Word Microsoft Outlook2\i=,Actuarial Analysts - Becoming a consultant(-Get experience Get exposed to a wide range of projects Become familiar with the client and pension plan Know the applicable laws and regulations Be an expert on actuarial models Pass exams Get more responsibility Get more interaction with the client Become a consultant!6RRf:ZChoosing a career  Insurance vs. Consulting.Examples of actuarial consulting firms Aon Consulting Hewitt Associates Mercer Human Resource Consulting Towers Perrin WATSON WYATT! Examples of insurance firms Cigna Blue Cross / Blue Shield State Farm MetLife Insurance vs. Consulting t'P_PP3PP'_3'j>:Getting a Job  What do I do?Take the right classes! If you can, take the classes that will give you VEE credit Get experience with computers! Having a class in computer programming is a plus Be proficient in Excel Take actuarial exams!`<I<Ik?FGetting a Job  What else can I do?Have internship experience Summer internships often lead to full-time offers Have some business experience, even if it is not actuarial Know your stuff Know about the career Know why the career appeals to you Know about the company that is interviewing you Interview OftentZmZZjZZmjl@>GSU Dates  Mark your calendar!Open House: Come learn more about Watson Wyatt! Tonight at 5:30 p.m. Career Fair: Thursday, November 11th On campus interviews Tuesday, November 16th  9 9/1GJKLPSTPD ` ̙33` ` ff3333f` 333MMM` f` f` 3>?" dU@?nKf3d@fez8ZPuf3l>8ZPYvf3U- n?" dd@   @@``@n?" dd@  @@``PT     `d"p<> ZK0 l@d@@(  hhh    `ss1 ?hnW  T Click to edit Master title style! !@  Zpapa1 ?}  RClick to edit Master text styles Second level Third level Fourth Level Fifth level!     SL , + #    S ~?8ZPyd8ZP?,+  S ~?8ZPyd8ZP?@k+  S ~?8ZPyd8ZP? , +  S ~?8ZPyd8ZP?+   S ~?8ZPyd8ZP?+   Z8ZPyd8ZP    S ~?8ZPyd8ZP?T7L /  # l   B%CDEF%% @`k  B%CDEF%% @`k  BZC@DE F& GGUZXUS R LGD@<8"2$/(-*-.,0*2(2&2%1#2 58<=ACFKJ J J I L O R VUSSRUWXZ^cfgjlorrqqppqrsuvvvw|||{yvusqqqrssrqpoonmllmopqppponmljhgfea][ Z Z\]]\ZVSS O!M$L&K*D*E)F(F'H&F%F%E%D%B%@&?(?*?,@-A/A1A2@3@5?69695949382524446381:2;3;3<4<2?.A-D,G(I&L#O RRSSTUUUU\\\[[Z[]^_``aaegh j k l m n m l lljigffghijklnopprstttuvwwxyz|}|{{zz|  ! !"0//}.{.z.y.x.w/x0y1{2}4}?{=z;x:w8w<v?uDtGtDsBq?n=k=k>k?jBjCjDkFlGlIlJkJjKjLjNlOmPnQiQiPiNiLhKdKcR`W\][c[d\d]e^f\iYjWkTkTxKxK~HFDABBBDBBBA:9630+'#  #+49=AEIMRWW\aeimquz}wrokheb^\YUSQME?:821.*$$(.38@@8/%!   #',06>FMT[zbnhapSyD5)xpi aYRJ#C(<.63/7(= BGLQ UY^afjntzwpkf`\VQLGC?;73/ +(%"!&,38?HJNTZcjqy}tle^WOHC?; 7 30,*))(("#*08:;<> F M RU@`  BZC@DE F& GGVZXVS R LGD@<8"3$/(-*-.,0*2)2&2%1#2 58<=ACFKJ J J I L O R VUSSRUWXZ^cfgjlorrqqppqrsuvvvw|||{yvutqqqrttrqpoonmllmopqppponmljihfea^[ Z Z]^^]ZWSS O!M$L&K*D*F)G(G'H&G%G%F%D%B%@&?(?*?,@-A/A1A2@3@5?6;695949382524446381:2;3;3<4<2?.A-D,G(I&L$O RRSSTUUUU\\\[[Z[]^_``aaegh j k l mn m l lljigffghijklnopprstttuvwwxyz|}|{{zz|  ! !"0//}.|.{.y.x.w/x0y1|2}4}?|={;x:w8w<v?uDtGtDsBq?p=k=k>k?jBjCjDkFlGlIlJkJjKjLkNlOmPpQiQiPiNiLhKeKdR`W\][c[d\d]e^f\iZjWkTkTxKxK~HGEACCCDCCCA:9730,'#  #+49=AEIMRWW\aeimquz}xrolheb_\YVSQME@:821.*$$(.38@@8/%!   #(,06?FMU[zbnhapSyD5)xpi aYRJ#C(<.63/8(= CGLQ UZ^afjnt{wpkf`\VQLGC?;73/ +(%"!&,38?HJNTZcjqy}tle^WOHC?; 7 30,*))(("#*08:;<? F M RV@`Y/  HQQ ?,  p*( 8ZP !!!11BBB  s *޽h ? 3f3 test.potw  ZK0 ` (    Z(e(e ?   T Click to edit Master title style! !  T8(e(e ?    W#Click to edit Master subtitle style$ $L , + #    S ~?8ZPyd8ZP?,+  S ~?8ZPyd8ZP?@k+  S ~?8ZPyd8ZP? , +  S ~?8ZPyd8ZP?+   S ~?8ZPyd8ZP?+   Z8ZPyd8ZP    S ~?8ZPyd8ZP?R   C *Awww-grayLRB  s *޽h ? 3f3 0 IAP(  A  Zxaxa1 ? @  SClick to edit Master notes styles Second Level Third Level Fourth Level Fifth Level"     Tp  01 ?      `Xxaxa1?F V* B  s *޽h ? a(80___PPT10.5`Rz vn@  (      `$ xaxa1?J D*B  s *޽h ? a(80___PPT10.5'|ZK0 LDP(    # lxaxa1 ?p     3 rxaxa1 ?    "H  0޽h ? gggGGGv ZK0 p(    3 rtxaxa1 ?hnW     3 r)xaxa1 ?}    HQQ ?,} R*( 8ZP H  0޽h ? gggGGG<  ZK0 $(  r  S hnW   r  S P}  H  0޽h ? 3f380___PPT10.>3v ZK0 (    3 rXjxaxa1 ?hnW     3 r,kxaxa1 ?}    HnQQ ?,} R*( 8ZP H  0޽h ? gggGGGv ZK0 (    3 r +xaxa1 ?hnW  +   3 r +xaxa1 ?} +   H,+QQ ?,} R*( 8ZP H  0޽h ? gggGGG ZK0 f^( $@ r  S +hnW  + r  S +} +   H0+QQ ?,} R*( 8ZP H  0޽h ? gggGGG<  ZK0  $(  r  S %+hnW  + r  S %+} + H  0޽h ? 3f380___PPT10.A ZK0 f^( $@ r  S ,+hnW  + r  S -+} +   HD1+QQ ?,} R*( 8ZP H  0޽h ? gggGGG ZK0 f^L( x Lr L S >+hnW  + r L S A+} +  L HD+QQ ?,} R*( 8ZP H L 0޽h ? gggGGG ZK0 f^0X( x Xr X S V+hnW  + r X S V+} +  X H8Z+QQ ?,} R*( 8ZP H X 0޽h ? gggGGG<  ZK0 p$(  r  S c+hnW  + r  S d+} + H  0޽h ? 3f380___PPT10.H0µ<  ZK0 $(  r  S i+hnW  + r  S pj+} + H  0޽h ? 3f380___PPT10.H %<  ZK0 $(  r  S +hnW  + r  S Ա+} + H  0޽h ? 3f380___PPT10.H<  ZK0 `$(  r  S x+hnW  + r  S L+} + H  0޽h ? 3f380___PPT10.H<  ZK0 $(  r  S +hnW  + r  S +} + H  0޽h ? 3f380___PPT10.IPj<  ZK0 $(  r  S D+hnW  + r  S +} + H  0޽h ? 3f380___PPT10.IH<  ZK0  $(   r   S ( hnW   r   S }  H   0޽h ? 3f380___PPT10.f!Y 0 x(  R  3     +~  C + @  +  H  0޽h ? a( 0 qi`(( $@ (R ( 3     o ( C x @   This course is intended as a general introduction to our firm and industry that can be delivered with a minimum of preparation by a senior retirement consultant. If possible, the OPL should deliver this presentation as the start of BTT for new hires.H ( 0޽h ? a(A- 0 `,(  ,R , 3     + , C + @  + Briefly describe the role of each party here. The role of actuaries will be fleshed out considerably in the remainder of the presentation.H , 0޽h ? a(a, 0 !@0(  0R 0 3     + 0 C + @  + wBriefly describe the tax advantages. Refer to New Hire Jargon List: BRPs and SERPs are examples of nonqualified plans.,E$H 0 0޽h ? a( 0 x 4(  4R 4 3     +~ 4 C T+ @  +  H 4 0޽h ? a( 0 xD( |@|@ DR D 3     +~ D C + @  +  H D 0޽h ? a(1 0 xd( Є@ R@ dR d 3     ~ d C   @    H d 0޽h ? a(3 0 xh( hu@8}@ hR h 3     ~ h C T  @    H h 0޽h ? a(r0y} x :%1; 6PG v&J0/xPR0q9` ,~qd ҜZ&j@el,( Oh+'0\U$ <H l x  ,Intro to Pension Plans PPT for BTT TrainingntrsysoptoysoysoP:\Invest\btt\btt\test.potfSoutheast Usert44tMicrosoft PowerPoint 4.0tf@8Q@:ش@(sPv@02(j!GSg  )'    """)))UUUMMMBBB999|PP3f333f3333f3ffffff3f̙3ff333f333333333f33333333f33f3ff3f3f3f3333f33̙33333f333333f3333f3ffffff3f33ff3f3f3f3fff3ffffffffff3ffff̙fff3fffff3fff333f3f3ff3ff33f̙̙3̙ff̙̙̙3f̙3f333f3333f3ffffff3f̙3f3f3f333f3333f3ffffff3f̙3f3ffffffffff!___www4'A x(xKʦ """)))UUUMMMBBB999|PP3f3333f333ff3fffff3f3f̙f3333f3333333333f3333333f3f33ff3f3f3f3333f3333333f3̙33333f333ff3ffffff3f33f3ff3f3f3ffff3fffffffff3fffffff3f̙ffff3ff333f3ff33fff33f3ff̙3f3f3333f333ff3fffff̙̙3̙f̙̙̙3f̙3f3f3333f333ff3fffff3f3f̙3ffffffffff!___wwwmrmmrlmImmrmlCCCCCrrI"mrmmrlCCmICCCCCCCmmrmlCCCCCCrrICCmlrmmrlCCmrInmmrmlmrIlrmmrlmrrImmmmlmrIlmmmrlrmrrImmmmlmmIlmmmrlrmrrImmmmlmmIlmmmmlrmmrI__________________________lrmmml________________________mmI________________________lmmmml____rmmrIlrmmmlmmIlmmmml_________________mmmrI_________________lmmrmml___________________rmmI_______lmmmmlmmmmIlrmrmmlrmmIImmrmmlmlmmIlmlrmmlrmmIImmrmmlmlmmIlmlrmmlrmmrI__Imlrmml________________________________________mlmmI_________________________________lmlmmml_____________________________________mmrmrI________ImlrmrmlmlmmIlmlmmmlmmrmrIImlmmrmlmlrmmIlmlmmmlmlrmrIImlmlrmlmlrmmIlmlmmmlmlrmmICllmlrmlmlrmmIImlmmmlmlmmmICllmlmmlmlrmrmIImlmmmlmlmmmICllmlmmlmlmmrmIImImmrmlmlmlmICllmlmmlmlmmrmIImImlrmlmlmlmIClImlmmlllmlrmIImImlrmlmlmlmIClImlmmlmlmlmmIImImlrmlmlmlrmIClImlmmllImlmmIIlImlmmlmlmlrmIClImImmllImlmmIIlImlmllmlmlrmIClImImmllImlmlIClCllmllmlmlrmIClImImlllImlmlIIlCllmllmlmlmmrIClIlImlllIlIlImIClClClCllClClClClClClClClClClClClClClClClClCClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClClrmrrIImrImmmmImmIlmmrllmmrmmmmmmmmmmmmmmmrmrmrmrrrrlrmrmmllmrmmmlCmmmrCllmmmrlCmlrmmCCmlmlmlmlmlmmrlmmrlmmrmmmmrmmrmmmmmmmmmmmmmmmmrmrmrmrmrmrmmIIrmmIllmmllmmmmlmmrmrrmmlmlrmmlrmrlrmrmmrmmrmmmmmmmmmmmmmrmrmrrrrrImlrmrmllImlrmmlCmlmmmCllmlmmmlCllmlmmCClImIllmIllmImlmImlmlmlmlmlmlmlmlmlmlmmrlmmrmmmrmmmrmrmmrmmmmmmmmmmmmmmlrmrmIImlrmmIllmlmmlImlmmmIllmlrmmllImlmlmlmlmlmlmlmlmlmlmlmlmlmlrmmlrmmmmrmmrmmrmmmmmmmmmmmrmrmrmrImImlrmllImlmmrmlCllmlmmClCllmlmmlClCmlmlrCClClIlClIlClImIlImClImImlmImlmImlmImlmlmlmlmlmlmlmlmlrlmmrlmmrmrmrmrmmrmmrmmmmmlmlrmIImlmlrmIlImlmlmlllImlmmlmlmlmmrmmmllImllImlmImlmlmlmImlmlmlmlmlmlmlmlmlmlmlmlrmmlrmmlrmrmrmrmmrmmrmmmmmmmmm0 000$([\{b00 000000000  0=] 0 0 0000 2 3 !A0C0E0G0I0c00000000000000000!%),.:;?]}acdeghijklmnop0DTimes New Roman<$0<B 04DVerdanaw Roman<$0<B 04" DMonotype Sorts<$0<B 040DArialpe Sorts<$0<B 04 C .@  @@``  @n?" dd@  @@`` ( |EEON+ MF   F 5QRVWXYZ[\/X$2$Efz7L; 0e0e     A@  A5% 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||@8`ad g4LdLdTB 0ppp@ g4KdKdTB 0Hp@ pp<4!d!dpC 0,-<4BdBdpC 0,-"ʚ;ʚ;<4dddd%F 0lr0___PPT10 2___PPT9/ 0? %0Introduction to Pension Plans and the Work We Do2Georgia State University Randy Finn Monica Ausman"3What Is a Pension Plan?The Answer Varies Depending on Whom You Ask Reward for long and faithful service Deferred wages Payment of moral obligation to provide financial security to retired employees A way to facilitate the departure of employees leaving the company&,,d8<Designing a Plan  Why bother?}Some Reasons for Having a Plan Meet Retirement Income Objective Competition Tax Effective Social Responsibility Labor Unions* ^ ^ Basic Types of Pension PlansDefined Benefit (DB) - Formula Determined Benefit Benefit is defined e.g. $25 per year of service, payable at age 65 Defined Contribution (DC) - Separate Account for Each Participant Contribution is defined e.g. Employer will contribute 3% of your monthly pay, into a 401kx2pZDpZBpZ[pZ2=B O%#Basic Types of Pension Plans - contHybrid Plans Defined Benefit Plans Designed to Look Like Defined Contribution Plan e.g. Employer will contribute 3% of your monthly pay, into an  account (held by the employer). Employer will credit the account with interest each year equal to 2%. &  ;, DB versus DC?DB Easy to plan retirement income Employer holds all of the risk Benefits loyal workers with long service Sometimes hard to understand DC Hard to plan retirement income Employee holds all of the risk Benefits transient workers with short service Usually easier to understand]be9NPension Actuaries  Where do we fit in?((Usually, Pension Actuaries will work with DB (and Hybrid) plans more than DC plans Many Pension Actuaries also have an Enrolled Actuary (EA) credential EA-1 Exam (can substitute SOA Course 1 and 2) EA-2A Exam (4 hour, multiple choice) EA-2B Exam (2 hour, multiple choice) 6zz<-Who do we work with?$ Employer/Plan Sponsor Often these are large, Fortune 500, companies with many employees Examples of WW Clients Attorneys Public Accountants Trustees & Investment Managers Governmental AgenciesB`Y`R`YRH1What Do We Do? - Overview,Basic Tasks Determine the value of employee benefits Ensure plan compliance with tax and government regulations Formulate strategies to keep employee benefits secure Annual Work Valuations Benefit Statements Government Forms IRS (Internal Revenue Service) PBGC (Pension Benefit Guaranty Corporation)t PP P/PKP  /K  R3What Do We Do?Special Projects Studies Plan improvements & design Plan cutbacks Windows (temporary incentive programs) Forecasts Plan Terminations Union NegotiationsNZ%Z%g;DActuarial Analysts  Who are they? Entry level associates Serve as assistants to more senior actuaries Are expected to take exams Are exposed to a wide variety of projects to gain experience h<BActuarial Analysts  Tools we use  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|~Root EntrydO)(v4$PicturesL;Current User5SummaryInformation(}U /0(  0;[0 0 000$([\{b00 000000000  0=] 0 0 0000 2 3 !A0C0E0G0I0c00000000000000000!%),.:;?]}acdeghijklmnop0DTimes New Roman0B 0DVerdanaw Roman0B 0" DMonotype Sorts0B 00DArialpe Sorts0B 0 C .@  @@``  @n?" dd@  @@`` ( |EEON+ MF   F 5QRVWXYZ[\/X$2$Efz7L; 0e0e     A@  A5% 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||@8`ad g4LdLd B 0ppp@ g4KdKd B 0Hp@ pp<4!d!dLpC 0,-<4BdBdLpC 0,-"ʚ;ʚ;<4ddddL%F 08r0___PPT10 2___PPT9/ 0? %0Introduction to Pension Plans and the Work We Do2Georgia State University Randy Finn Monica Ausman"3What Is a Pension Plan?The Answer Varies Depending on Whom You Ask Reward for long and faithful service Deferred wages Payment of moral obligation to provide financial security to retired employees A way to facilitate the departure of employees leaving the company&,,d8<Designing a Plan  Why bother?}Some Reasons for Having a Plan Meet Retirement Income Objective Competition Tax Effective Social Responsibility Labor Unions* ^ ^ Basic Types of Pension PlansDefined Benefit (DB) - Formula Determined Benefit Benefit is defined e.g. $25 per year of service, payable at age 65 Defined Contribution (DC) - Separate Account for Each Participant Contribution is defined e.g. Employer will contribute 3% of your monthly pay, into a 401kx2pZDpZBpZ[pZ2=B O%#Basic Types of Pension Plans - contHybrid Plans Defined Benefit Plans Designed to Look Like Defined Contribution Plan e.g. Employer will contribute 3% of your monthly pay, into an  account (held by the employer). Employer will credit the account with interest each year equal to 2%. &  ;, DB versus DC?DB Easy to plan retirement income Employer holds all of the risk Benefits loyal workers with long service Sometimes hard to understand DC Hard to plan retirement income Employee holds all of the risk Benefits transient workers with short service Usually easier to understand]be9NPension Actuaries  Where do we fit in?((Usually, Pension Actuaries will work with DB (and Hybrid) plans more than DC plans Many Pension Actuaries also have an Enrolled Actuary (EA) credential EA-1 Exam (can substitute SOA Course 1 and 2) EA-2A Exam (4 hour, multiple choice) EA-2B Exam (2 hour, multiple choice) 6zz<-Who do we work with?$ Employer/Plan Sponsor Often these are large, Fortune 500, companies with many employees Examples of WW Clients Attorneys Public Accountants Trustees & Investment Managers Governmental AgenciesB`Y`R`YRH1What Do We Do? - Overview,Basic Tasks Determine the value of employee benefits Ensure plan compliance with tax and government regulations Formulate strategies to keep employee benefits secure Annual Work Valuations Benefit Statements Government Forms IRS (Internal Revenue Service) PBGC (Pension Benefit Guaranty Corporation)t PP P/PKP  /K  R3What Do We Do?Special Projects Studies Plan improvements & design Plan cutbacks Windows (temporary incentive programs) Forecasts Plan Terminations Union NegotiationsNZ%Z%g;DActuarial Analysts  Who are they? Entry level associates Serve as assistants to more senior actuaries Are expected to take exams Are exposed to a wide variety of projects to gain experience h<BActuarial Analysts  Tools we useMicrosoft Excel Company-created software Our good ol TI and HP calculators Actuarial Tables Microsoft Access Microsoft Word Microsoft Outlook2\i=,Actuarial Analysts - Becoming a consultant(-Get experience Get exposed to a wide range of projects Become familiar with the client and pension plan Know the applicable laws and regulations Be an expert on actuarial models Pass exams Get more responsibility Get more interaction with the client Become a consultant!6RRf:ZChoosing a career  Insurance vs. Consulting.Examples of actuarial consulting firms Aon Consulting Hewitt Associates Mercer Human Resource Consulting Towers Perrin WATSON WYATT! Examples of insurance firms Cigna Blue Cross / Blue Shield State Farm MetLife Insurance vs. Consulting t'P_PP3PP'_3'j>:Getting a Job  What do I do?Take the right classes! If you can, take the classes that will give you VEE credit Get experience with computers! Having a class in computer programming is a plus Be proficient in Excel Take actuarial exams!`<I<Ik?FGetting a Job  What else can I do?Have internship experience Summer internships often lead to full-time offers Have some business experience, even if it is not actuarial Know your stuff Know about the career Know why the career appeals to you Know about the company that is interviewing you Interview OftentZmZZjZZmjl@>GSU Dates  Mark your calendar!Open House: Come learn more about Watson Wyatt! Tonight at 5:30 p.m. Career Fair: Thursday, November 11th On campus interviews Tuesday, November 16th  9 9/1GJKLPSTPZK0 LDP(    # lxaxa1 ?@`@    3 rxaxa1 ?0   "H  0޽h ? gggGGGrսeYl-( /0(  0;[0  Fonts UsedDesign Template Slide Titles@_KUnknownUnknownuan.Strozier 0t_AdHocReviewCycleID_EmailSubject _AuthorEmail_AuthorEmailDisplayName ,wPresenRoot EntrydO)NvR3PicturesL;Current User#SummaryInformation(}U Microsoft Excel Company-created software Our good ol TI and HP calculators Actuarial Tables Microsoft Access Microsoft Word Microsoft Outlook2\i=,Actuarial Analysts - Becoming a consultant(-Get experience Get exposed to a wide range of projects Become familiar with the client and pension plan Know the applicable laws and regulations Be an expert on actuarial models Pass exams Get more responsibility Get more interaction with the client Become a consultant!6RRf:ZChoosing a career  Insurance vs. Consulting.Examples of actuarial consulting firms Aon Consulting Hewitt Associates Mercer Human Resource Consulting Towers Perrin WATSON WYATT! Examples of insurance firms Cigna Blue Cross / Blue Shield State Farm MetLife Insurance vs. Consulting t'P_PP3PP'_3'j>:Getting a Job  What do I do?Take the right classes! If you can, take the classes that will give you VEE credit Get experience with computers! Having a class in computer programming is a plus Be proficient in Excel Take actuarial exams!`<I<Ik?FGetting a Job  What else can I do?Have internship experience Summer internships often lead to full-time offers Have some business experience, even if it is not actuarial Know your stuff Know about the career Know why the career appeals to you Know about the company that is interviewing you Interview OftentZmZZjZZmjl@>GSU Dates  Mark your calendar!Open House: Come learn more about Watson Wyatt! Tonight at 5:30 p.m. Career Fair: Thursday, November 11th 10 a.m.  3 p.m. On campus interviews Tuesday, November 16th 8:30 a.m. to 4:15 p.m.  9*0 9  /1GJKLPSTP<  ZK0  $(   r   S h-hnW  - r   S (-} - H   0޽h ? 3f380___PPT10.f!Yrlw@eql-( /0(  0;[0 0 000$([\{b00 000000000  0=] 0 0 0000 2 3 !A0C0E0G0I0c00000000000000000!%),.:;?]}acdeghijklmnop0DTimes New Roman0B 0DVerdanaw Roman0B 0" DMonotype Sorts0B 00DArialpe Sorts0B 0 C .@  @@``  @n?" dd@  @@`` ( |EEON+ MF   F 5QRVWXYZ[\/X$2$Efz7L; 0e0e     A@  A5% 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||@8`ad g4LdLd B 0ppp@ g4KdKd B 0Hp@ pp<4!d!dLpC 0,-<4BdBdLpC 0,-"ʚ;ʚ;<4ddddL%F 08r0___PPT10 2___PPT9/ 0? %0Introduction to Pension Plans and the Work We Do2Georgia State University Randy Finn Monica Ausman"3What Is a Pension Plan?The Answer Varies Depending on Whom You Ask Reward for long and faithful service Deferred wages Payment of moral obligation to provide financial security to retired employees A way to facilitate the departure of employees leaving the company&,,d8<Designing a Plan  Why bother?}Some Reasons for Having a Plan Meet Retirement Income Objective Competition Tax Effective Social Responsibility Labor Unions* ^ ^ Basic Types of Pension PlansDefined Benefit (DB) - Formula Determined Benefit Benefit is defined e.g. $25 per year of service, payable at age 65 Defined Contribution (DC) - Separate Account for Each Participant Contribution is defined e.g. Employer will contribute 3% of your monthly pay, into a 401kx2pZDpZBpZ[pZ2=B O%#Basic Types of Pension Plans - contHybrid Plans Defined Benefit Plans Designed to Look Like Defined Contribution Plan e.g. Employer will contribute 3% of your monthly pay, into an  account (held by the employer). Employer will credit the account with interest each year equal to 2%. &  ;, DB versus DC?DB Easy to plan retirement income Employer holds all of the risk Benefits loyal workers with long service Sometimes hard to understand DC Hard to plan retirement income Employee holds all of the risk Benefits transient workers with short service Usually easier to understand]be9NPension Actuaries  Where do we fit in?((Usually, Pension Actuaries will work with DB (and Hybrid) plans more than DC plans Many Pension Actuaries also have an Enrolled Actuary (EA) credential EA-1 Exam (can substitute SOA Course 1 and 2) EA-2A Exam (4 hour, multiple choice) EA-2B Exam (2 hour, multiple choice) 6zz<-Who do we work with?$ Employer/Plan Sponsor Often these are large, Fortune 500, companies with many employees Examples of WW Clients Attorneys Public Accountants Trustees & Investment Managers Governmental AgenciesB`Y`R`YRH1What Do We Do? - Overview,Basic Tasks Determine the value of employee benefits Ensure plan compliance with tax and government regulations Formulate strategies to keep employee benefits secure Annual Work Valuations Benefit Statements Government Forms IRS (Internal Revenue Service) PBGC (Pension Benefit Guaranty Corporation)t PP P/PKP  /K  R3What Do We Do?Special Projects Studies Plan improvements & design Plan cutbacks Windows (temporary incentive programs) Forecasts Plan Terminations Union NegotiationsNZ%Z%g;DActuarial Analysts  Who are they? Entry level associates Serve as assistants to more senior actuaries Are expected to take exams Are exposed to a wide variety of projects to gain experience h<BActuarial Analysts  Tools we useMicrosoft Excel Company-created software Our good ol TI and HP calculators Actuarial Tables Microsoft Access Microsoft Word Microsoft Outlook2\i=,Actuarial Analysts - Becoming a consultant(-Get experience Get exposed to a wide range of projects Become familiar with the client and pension plan Know the applicable laws and regulations Be an expert on actuarial models Pass exams Get more responsibility Get more interaction with the client Become a consultant!6RRf:ZChoosing a career  Insurance vs. Consulting.Examples of actuarial consulting firms Aon Consulting Hewitt Associates Mercer Human Resource Consulting Towers Perrin WATSON WYATT! Examples of insurance firms Cigna Blue Cross / Blue Shield State Farm MetLife Insurance vs. Consulting t'P_PP3PP'_3'j>:Getting a Job  What do I do?Take the right classes! If you can, take the classes that will give you VEE credit Get experience with computers! Having a class in computer programming is a plus Be proficient in Excel Take actuarial exams!`<I<Ik?FGetting a Job  What else can I do?Have internship experience Summer internships often lead to full-time offers Have some business experience, even if it is not actuarial Know your stuff Know about the career Know why the career appeals to you Know about the company that is interviewing you Interview OftentZmZZjZZmjl@>GSU Dates  Mark your calendar!Open House: Come learn more about Watson Wyatt! Tonight at 5:30 p.m. Career Fair: Thursday, November 11th 10 a.m.  3 p.m. On campus interviews Tuesday, November 16th 8:30 a.m. to 4:15 p.m.  9*0 9  /1GJKLPSTPr@eKl Fonts UsedDesign Template Slide Titles@_K  StrozierD'Juan.Strozier 0t_AdHocReviewCycleID_EmailSubject _AuthorEmail_AuthorEmailDisplayName ,wPresen tation Monica.Ausman@WatsonWyatt.comAusman, Monica (Atlanta)PowerPoint Document( LDocumentSummaryInformation8՜.+,D՜.+,`    Letter Paper (8.5x11 in)y L: Times New RomanVerdanaMonotype SortsArial test.pot1Introduction to Pension Plans and the Work We DoWhat Is a Pension Plan?Designing a Plan Why bother?Basic Types of Pension Plans$Basic Types of Pension Plans - contDB versus DC?(Pension Actuaries Where do we fit in?Who do we work with?What Do We Do? - OverviewWhat Do We Do?#A