DESCRIPTION OF CALCULATIONS

         For each year of retirement the ages of participants, inflated costs 
of living, and Social Security benefits are calculated. Social Security is 
calculated using it's historic tendency to increase at a rate equivalent to 
80% of inflation. Programed after retirement expenditures and cash collections 
are included at the value input. (I.E. no inflation factor is used on these 
inputs) Other incomes including pension benefits are inflated in accordance 
with their COLA's and the user's current estimate of inflation. 

         For each pension option that has an input in the pension module a 
yearly comparison of income and expenses are made. Deficiencies are made up 
first from normal taxable savings and then from your personal IRA (includes 
any roll over) and lastly from your spouse's IRA. Interest from those savings 
are included as income in that year. Taxes are an expense from the previous 
year. Bankrupt situations are noted for later reporting.

         Taxes are estimated using standard deductions and the 1989 tax 
schedules for married or single as appropriate. Social Security is taxed using 
1988 rules. All money taken from IRA's, including the mandatory withdrawals 
over age 70, are taxed, but interest earned in IRA's is not.