Inflation parameters for indexed DB pension plans. How to set.

Tags: 

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

To set a real constant pension benefit, input "100%" for "degree of inflation indexation of annual benefit".

Best,
Brian

We use cookies to deliver the best user experience and improve our site.