Description: Small pension plans, are using Cost of Living Allowances 'COLA' in calculating benefits. This paper examines ways to handle COLA in valuations.

Description: First demonstrates that the choice of mortality basis in the pre-retirement period is immaterial for a defined benefit plan, valued on the Aggregate method, with a pre-retirement death benefit equal to the present value of the accrued pension. Second, presents comparisons of contribution costs for Aggregate vs. Unit Credit funding methods.