A model for retirement in a small business environment

• Main Authors: Ogbac, Simon M., Teehankee, Alexandra L.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16570
• Institution: De La Salle University

This thesis presents the procedure in coming up with a retirement model suitable for small-scale businesses. By small-scale, the researchers mean one kind of business or establishment which is owned and managed independently and is not market-domineering. The retirement model was developed through the study of multiple decrements and the theory of pension funding. Two small-scale companies were studied and compared to validate the proposed retirement plan provision which made use of the Defined Benefit kind of retirement plan through the use of the projected unit credit cost method. Most of the formulas used in the calculations were taken from the book of Bowers[5] and Berin[3]. The researchers constructed a multiple decrement table consisting of three decrements, death, disability and turnover through the use of the given absolute rates of death, disability and turnover. These rates were gathered from the 1983 Group Annuity Mortality Table, 1998 Bureau of Labor and Employment Statistics and the 1953 Disability Study conducted by the Society of Actuaries.