Plan Rules (all of the given information for the problem is below) Conversion Da
ID: 2645551 • Letter: P
Question
Plan Rules (all of the given information for the problem is below)
Conversion Data
Active employees Participating at 12/31/2004 will have rolled up CS amounts provided in the data as of 12/31/2004. Firm will convent the rolled up CS to completed months to add to future CS accruals using the below formula: Rolled up CS in completed months=Rolled up CS provided by client x 12, rounded to 0 decimal places.
Future CS start date
Later of : Rolled up CS effective date +1 day.
or DOP (date of participation)
CS Stop deate
Earlier of:
Final termination date
or Death date (DTH
Calculation:
CS is determined on an event to event basis counting months according to the CS calculation steps provided below:
The firm will credit .083 years earned in each month where at least one day worked in a month from the future CS start date to the CS stop date.
The total CS will be sum of the rolled up CS in completed months (if any) plus the future CS between 01/01/2005 and the CS stop date.
Rounding to 3 decimals
Participant infomation
DOH(date of hire) 7/15/1987
DOP(date of participation) 08//01/1988
DOT (date of termination) 08/05/2009
REH(rehire) 09/01/2009
DTH(death) 01/29/2010
Rolled up CS 12/31/2004 16.417 years
Solve for credited service as of the final determination date
Explanation / Answer
Total CS = Rolled up CS in completed month (+) Future CS 1.1.2005 to CS Stop date.
Rolled up CS in completed Month= 16.417*12 = 197
Future CS Start Date
Later of:
Rolled up cs effective date +1 days = 7/15/1987+1 days= 7/16/1987
or
Date of participation = 1/8/1988
start date 1/8/1988
CS Stop date :
earlier of
Termination date = 8/5/2009
Death Date = 1/29/2010
CS Stop Date 8/5/2009
Future CS Between 1/1/2005 to stop date
Start date or 1/1/2005 ( Later of) to stop date
1/8/1988 or 1/1/2005 =1/1/2005 to 8/5/2009= 54 Months ( Fraction of month is considered as full month)
Credit Month(s)= 54*0.083=4.482 Months
Total CS = Rolled up CS in completed month (+) Future CS 1.1.2005 to CS Stop date.
=197+54+4.482=255.482 months