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Acturial liabilties

T

Thomas Greeves

Made first post
Hello,

I am struggling to find anything in the notes regarding the calculation of acturial liabilties for deferred and pensioner members (only actives) under the different funding methods. Am I right in assuming they are the same no matter the method:

AL of deferred = Deferred pensions p.a. X [(1+r)/(1+i)]^(65-x) X a_65^r%

AL of pensioner = Pension in payment p.a. X a_average age of pensioners^r%

i: Discount rate
r: revaluation rate
x: Average age of deferred
NRA: 65
a_ annuity

Best regards,
 
Hi Thomas

Yes the liabilities for DPs and pensioners should be the same under each funding method. In the approximate formulae you have given, the annuities should be calculated at a net rate of (1+i)/(1+pinc) - 1

Best wishes
Gresham
 
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