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1991 1992 1993 1994
A. Investment return 5.5% 4.9% 3.6% 3.6%
B. Present value accrued benefits
(beginning of year)
a. Active $14.7 $38.5 $62.9 $83.6
b. Retired 28.2 36.7 47.7 48.9
c. Total 42.9 75.2 110.6 132.5
C. Accrued liability (beginning of year)
a. Active $12.6 $28.7 44.7 $59.4
b. Retired 28.2 36.7 47.7 48.9
c. Total 40.8 65.4 92.4 108.3
D. Normal cost (beginning of year) 0.3 1.2 2.5 3.3
E. Accrued liability (yearend)
a. Active $12.3 $31.2 $48.7 $64.7
b. Retired 27.8 34.5 45.2 45.8
c. Total 40.1 65.7 93.9 110.5
F. Account limit 40.1 65.7 93.9 110.5
G. Plan assets (VEBA + 401(h)) -0- 29.3 28.0 44.1
H. Deductible limit 40.1 36.4 65.9 66.4
Mr. Scharmer also calculated the account limit for the reserve
by varying the application of the aforementioned methodology to
reflect the investment rates Mr. Daskais proposed. Under these
computations, he determined that the accrued liability (dollars in
millions) for 1991-94 was as follows:
1991 1992 1993 1994
A. Investment return 6.0% 5.7% 4.9%
B. Accrued liability (beginning of year)
a. Active $10.3 $26.1 $35.0 $51.6
b. Retired 26.0 32.3 40.0 42.4
c. Total 36.3 58.4 75.0 94.0
C. Account limit 36.3 58.4 75.0 94.0
D. Plan assets (VEBA + 401(h)) -0- 29.6 28.6 44.7
E. Deductible limit 36.3 28.8 46.4 49.3
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