Description: The basic goal of this paper is to develop a generalized statement of aggregate actuarial cost methods and relate to it certain ideas developed by Trowbridge, Nesbitt, and others. A secondary goal is to describe practical methods which bear the same relationship to unit credit funding that the 'usual' forms of frozen initial liability and aggregate bear to entry age normal funding. From Transactions of Society of Actuaries 1967, Vol. 19, Pt. 1, No. 53 AB.

Description: This paper uses a Bayesian approach to persistency to explore retirement cost projection variability. The analysis is divided into two parts. In the first part a subjective population projection model is developed, based on a beta-binomial distribution for the number of participants persisting through a given age. Probability statements regarding such items as the number of participants at a given age and the distribution of retirees are developed. The second part shows how the model might be used to generate confidence intervals for retirement cost projections. Both the single-entry-age case and the multiple-entry-age case are considered. From Transactions of Society of Actuaries 1979, Vol. 31.

Description: The objective of this paper, prepared by the Society of Actuaries Committee on Pension Principles and Related Research, is to examine the advantages and disadvantages of using select and ultimate interest and salary scale assumptions in the valuation of defined benefit pension plans. The technical issues involved and the effect of such assumptions on the incidence of plan cost are also studied. From Transactions of Society of Actuaries 1985, Vol. 37.

Description: This research examines funding valuation discount rates that reflect the expected return on investments in accordance with the pension plan’s investment policy. The research is based on data from regulatory filings in Ontario, with supplementary information from British Columbia and the United States.

Description: This is a research project on possible replacement indices for the 30 year treasury rates used to value current liability for defined benefit pension plans in the US.

Description: Study of the impact of IRS proposed mortality tables on private sector pension plan costs, including liabilities, contributions and PBGC premiums.

Description: This paper deals with the selection of appropriate interest and inflation assumptions, which is one of the most important considerations in the valuation of a defined benefit pension plan. The paper begins by describing a simplified model in which the only important consideration is the selection of an appropriate differential between interest and inflation assumptions. The discussion then considers some situations that might lead the actuary to attempt to select a realistic level of interest and inflation assumptions, in addition to an appropriate differential. The author's conclusion is that in some situations the absolute level of the interest and inflation assumptions can be all but meaningless, and the differential between the two assumptions is the important factor. In other situations the use of this technique will produce serious inaccuracies in the valuation results. As always, the actuary must analyze each situation in order to determine which of the available techniques will produce the best results with the least effort, given the degree of accuracy required. From Transactions of Society of Actuaries 1976, Vol. 28.

Description: This paper examines tandem levels of salary and interest rates and finds that the absolute level of each assumption as well as the differential are significant cost determinants for defined benefit pension plans. In forming best-estimate salary and interest rate assumptions, the actuary must reconcile the difference, if any, between the currently observed rates and the valuation assumptions. Common practice is to choose expected long-term rather than observed rates for valuation purposes. The error in this procedure is analyzed and found to be tolerable for strictly temporary discrepancies between observed rates and valuation assumptions. For situations where these discrepancies are expected to persist for some time, a need is shown for nonuniform, calendar-year assumptions or their equivalent in order to develop best-estimate assumptions. Followed by several discussion papers submitted

Description: This research study presents the results of termination rates which do not match the pattern of the T tables in use since first produced in the 1950. Documentation of the data included in the study and the supporting observations are set forth in this paper. From the Pension Forum, August 1992.

Description: This paper summarizes third millennium pension research available on the Society of Actuaries Website. The research is organized by categories. In some cases research is assigned to more than one category due to overlap. The goal is to enable a pension actuary who is looking for a research resource to ascertain if there is relevant research and if so to be able to find and download the information. For each item, the year the research was released, the form of research e.g. literature search, paper, survey and a brief synopsis are provided.