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Incorporating some of the key concepts of changes in the internal revenue code regarding the calculation of surpluses, actuarial science in the industry of pension plans is applied to meet the new social demands and various government discrimination test calculations providing the employees and retirees with understandable choices and transition paths in the short and long term financial and economic trends benefiting them by blending the old and new benefit plans on an equitable basis helping the employees, retirees and the senior citizens for the tax-free accumulation of a fund for later use as a retirement income.

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