Errata for the Solutions to the 2002 EA-2B Exam
03/10/03
| Question 14: | The note at the end of the question should be ignored. The average benefit percentage is given in the question. |
| Question 33: | Once the adjusted value of vested benefits and the adjusted plan assets are determined, their difference is increased with interest using the required interest rate of 4.75% (not the current liability percentage of 6%). The last two lines of this solution should read: |
| Adjusted UVB1/1/2002 = (1,080,414 + 4,502,659 - 5,133,988) x 1.0475 | |
| = 470,416 | |
| 2002 variable premium = $471,000 x .009 = $4,239 | |