CGFO - Financial Administration - Pension
Benefits exam questions with correct answers
Alpha - Measure of risk-adjusted performance
Beta - Measure of a fund's or a stock's risk in relation to the market or to an alternative benchmark
Gamma - Ratio of a change in the option delta to a small change in the price of the asset on which the
option is written
PERS - Public Employee Retirement System
CAFR - Comprehensive Annual Financial Report
PERS CAFR - Comprehensive Annual Financial Report for a Public Employee Retirement System
Yield - Percentage rate of return paid on a stock in the form of dividends, or he effective rate of interest
paid on a bond or note
Yield Curve - Graphic depiction of the relationship between the yield on bonds of the same credit quality
but different maturities
Sharpe Ratio - Measure of a portfolio's excess return relative to the total variability of the portfolio
Small-cap - A stock with a small capitalization, meaning a total equity value of less than $500 million
Actuary - Person or company that estimates the value of claims pending and the estimated reserves
needed
, Actuarial Valuation - Process of assessing the viability of a PERS
Defined Benefit Plan - Pension plan obliging the sponsor to make specified dollar payments to qualifying
employees
Pension obligations are effectively the debt obligation of the plan sponsor
Defined Contribution Plan - Pension plan where a sponsor is responsible only for making specified
contributions in to the plan on behalf of qualifying participants
Jensen Index - Uses the capital asset pricing model to determine whether a money manager
outperformed a market index
Return on Equity (ROE) - Indicator of profitability
Determined by dividing net income for the past 12 months by common stockholder equity (adjusted for
stock splits)
Investors use as a measure of how a company is using its money
Return on Investment (ROI) - Generally, book income as a proportion of net book value
Annual Required Contribution (ARC) - Expense that a government would report in its accrual-based
financial statements
F.S. 175.021 - Why? - Cover firefighters that perform state and municipal function
Firefighters entitled to benefits in state
Established minimum benefits and standards for operating and funding (Pension Trust Fund)
Average Final Compensation Definition - One-twelfth (1/12) of the average annual compensation of the
5 best years of the last 10 years of credible service
Local Law Plan - Defined benefit pension plan
Benefits exam questions with correct answers
Alpha - Measure of risk-adjusted performance
Beta - Measure of a fund's or a stock's risk in relation to the market or to an alternative benchmark
Gamma - Ratio of a change in the option delta to a small change in the price of the asset on which the
option is written
PERS - Public Employee Retirement System
CAFR - Comprehensive Annual Financial Report
PERS CAFR - Comprehensive Annual Financial Report for a Public Employee Retirement System
Yield - Percentage rate of return paid on a stock in the form of dividends, or he effective rate of interest
paid on a bond or note
Yield Curve - Graphic depiction of the relationship between the yield on bonds of the same credit quality
but different maturities
Sharpe Ratio - Measure of a portfolio's excess return relative to the total variability of the portfolio
Small-cap - A stock with a small capitalization, meaning a total equity value of less than $500 million
Actuary - Person or company that estimates the value of claims pending and the estimated reserves
needed
, Actuarial Valuation - Process of assessing the viability of a PERS
Defined Benefit Plan - Pension plan obliging the sponsor to make specified dollar payments to qualifying
employees
Pension obligations are effectively the debt obligation of the plan sponsor
Defined Contribution Plan - Pension plan where a sponsor is responsible only for making specified
contributions in to the plan on behalf of qualifying participants
Jensen Index - Uses the capital asset pricing model to determine whether a money manager
outperformed a market index
Return on Equity (ROE) - Indicator of profitability
Determined by dividing net income for the past 12 months by common stockholder equity (adjusted for
stock splits)
Investors use as a measure of how a company is using its money
Return on Investment (ROI) - Generally, book income as a proportion of net book value
Annual Required Contribution (ARC) - Expense that a government would report in its accrual-based
financial statements
F.S. 175.021 - Why? - Cover firefighters that perform state and municipal function
Firefighters entitled to benefits in state
Established minimum benefits and standards for operating and funding (Pension Trust Fund)
Average Final Compensation Definition - One-twelfth (1/12) of the average annual compensation of the
5 best years of the last 10 years of credible service
Local Law Plan - Defined benefit pension plan
