Inflation parameters for indexed DB pension plans. How to set.
Under my Federal Employee Pension plan my pension benefits are indexed. The only way I have been able to get the ESP model to correctly show what is effectively a real constant benefit is to set the overall inflation rate to zero. This makes some of the other values incorrect. I would like to set the inflation parameters to what I expect over time and allow different rate of indexation to various forms of income and expense.
Comments
BrianVezza
Wed, 09/30/2015 - 22:06
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To set a real constant
To set a real constant pension benefit, input "100%" for "degree of inflation indexation of annual benefit".
Best,
Brian