Cash Balance Formula Quiz

A formula that defines benefits based on your age and years of service, allowing you to receive a traditional pension plan benefit upon retirement

A formula that defines benefits based on your education level and certifications, allowing you to receive a higher salary

A formula that defines benefits based on your account balance, allowing you to take the entire value of your cash balance benefit with you when you leave the company (correct)

A formula that defines benefits based on your job title and performance, allowing you to receive a bonus at the end of the year

Opening/account balance x Pay credits x Interest credits = Closing Balance

Opening/account balance + Pay credits + Interest credits = Closing Balance (correct)

Opening/account balance - Pay credits + Interest credits = Closing Balance

Opening/account balance + Pay credits - Interest credits = Closing Balance

The monthly interest crediting rate is derived from the average annual yield on the 5-year U.S. Treasury bond at the end of the second full business week of the month immediately prior to the quarter in which such monthly interest credit is to apply, subject to a minimum rate of 1% and a maximum rate of 6%

The monthly interest crediting rate is derived from the average annual yield on the 20-year U.S. Treasury bond at the end of the first full business week of the month immediately prior to the quarter in which such monthly interest credit is to apply, subject to a minimum rate of 3% and a maximum rate of 8%

The monthly interest crediting rate is derived from the average annual yield on the 30-year U.S. Treasury bond at the end of the third full business week of the month immediately prior to the quarter in which such monthly interest credit is to apply, subject to a minimum rate of 4% and a maximum rate of 9% (correct)

The monthly interest crediting rate is derived from the average annual yield on the 10-year U.S. Treasury bond at the beginning of the quarter in which such monthly interest credit is to apply, subject to a minimum rate of 2% and a maximum rate of 7%

<p>One subaccount represents the account balance as of December 31, 2013 and the other subaccount represents the monthly Pay Credits and Interest Credits</p> Signup and view all the answers

<p>At the end of each month in which the participant is an eligible employee and receives Eligible Total Pay</p> Signup and view all the answers

<p>6%</p> Signup and view all the answers