Important Points for IC 83 - Group Insurance and Retirement Benefit Schemes Exam
Page 29 Of 49
Go to:
The cost of a benefit plan depends on: The level of benefits granted, The actual financial experience of the scheme, the actual scheme membership.
Prospective methods and Accured benefit methods are commonly used to set the contributions for defined benefit pension schemes that are funded in advance by regular contributions.
Prospective methods target a stable contribution rate and includes: Attained Age method and Entry Age mehtod.
Accured benefits methods, which fund for a target level of cover of benefits accured to date, in other words target the Actuarial Liability (AL), includes: Projected Unit Method and Current Unit Method.
For Prospective methods the Actuarial Liability is the difference between the discounted value of the total expected benefits for the members and the discounted value of the future expected contributions.
MODELEXAM® 
www.realsoftinfoplan.com