Planit:Malaysian Civil Servant Pension Exercise

From Planipedia

This case study is specific to financial planning in Malaysia, so has fixed values rather than indices by country. For a similar case study applicable to other case studies, please see Planit:Calculating and Entering Defined Benefit Pension Plans, Planit:UK Defined Benefit Pension Plans Case Study, or Planit:Entering Other Revenues Case Study.

Solve for the following problem:

Your client expects to receive a pension when he retires in 5 years, at age 55. At that age, he will have worked at his place of business for 30 years. His current salary is RM 60,000. Calculate the amount of the pension as an annual revenue and lump sum payment. Note: If calculating the lump sum amount of a pension the formula is 7.5% x number of months worked at retirement x last working salary.

What did you enter for the following data entry fields, for each type of pension?

Amount Per Year: $ ____________ $ ____________

From Year: _________ _________

To Year: __________ _________

Percent Taxable: _______% _______%

Model As: _______________________ _______________________

Check the accuracy of your client against the answer key.