Projected Unit Credit normal cost for a DB plan — NC_PUC_db • mqriskR

Computes the PUC normal cost as the APV of the portion of the projected benefit attributed to the current year of service.

Usage

NC_PUC_db(projected_benefit, total_service, v_to_ret, p_surv, adue_ret)

Arguments

projected_benefit: Projected benefit at retirement.
total_service: Total service at retirement.
v_to_ret: Discount factor to retirement.
p_surv: Active-service survival probability to retirement.
adue_ret: Retirement annuity factor.

Value

PUC normal cost.

Examples

NC_PUC_db(
  projected_benefit = 30000,
  total_service = 30,
  v_to_ret = 0.5,
  p_surv = 0.9,
  adue_ret = 12
)
#> [1] 5400