Description: Interest rate modeling is discussed in this paper with special emphasis on the long and short rate model of Brennan and Schwartz. Comment is made on an unexpected aspect of the solution of the resulting partial differential equation. Also, an analysis is made of the predictive power of the term structure of interest rates. From the Actuarial Research Clearing House 1991 Vol. 1.

Description: It is common for a pension plan to be amended to improve benefits in respects of service after the date of amendment. This will be referred to as a non-retroactive amendment. The application of the entry age normal and projected unit credit cost methods to this situation requires that a decision be made about the way to handle such an amendment. In this paper, these two cost methods and their application to such an amendment are considered in turn. From Actuarial Research Clearing House 1994, Vol. 1.