It seems that the entire assignment revolves around creating a good DC plan.
The problem is that anyone who is within 15 years of retirement doesn't have enough time to accrue a large enough account balance to come anywhere close to the 70% retirement income goal.
From this it seems clear to me that despite the Chocolate Factories concern "because of the potential risks associated with the funding and accounting for such a plan", the DB is the best route to go.
I thought about maybe using the excess funds from the Chocolate Factories budget to contribute towards employees who would be retiring soon so their balance would be high enough at retirement, but I suspect that this would be against the 15% max contribution rate rule.
Most of the questions for Task 7 seem to revolve around the DC plan you created. Am I missing something here?
The problem is that anyone who is within 15 years of retirement doesn't have enough time to accrue a large enough account balance to come anywhere close to the 70% retirement income goal.
From this it seems clear to me that despite the Chocolate Factories concern "because of the potential risks associated with the funding and accounting for such a plan", the DB is the best route to go.
I thought about maybe using the excess funds from the Chocolate Factories budget to contribute towards employees who would be retiring soon so their balance would be high enough at retirement, but I suspect that this would be against the 15% max contribution rate rule.
Most of the questions for Task 7 seem to revolve around the DC plan you created. Am I missing something here?
EOM 3 Final Recommendation