Description: This paper presents a generalized profits released model which resolves the difficulties of the traditional analysis posed by products that have fluctuating profits and losses over time or have no initial investment. Discussions of the paper are included.

Description: These notes are a follow-up to the paper 'Introduction to the Dynamics of Pension Funding' by the same authors and published in Transactions of Society of Actuaries 1976, Vol. 28. The purpose of that paper was to provide an introduction to mathematical principles applicable to pension funding under dynamic conditions of population growth, inflation, and automatic adjustment of benefits. The first note discusses a general contribution formula and a number of special cases and modifications. The second note concerns aggregate cost funding when the actuary uses assumptions about cost factors which differ consistently from cost experience. The final note concerns the variation of the annuity unit under a variable annuity program patterned after the plan employed by the College Retirement Equities Fund [CREF]. From Actuarial Research Clearing House 1981, Vol. 1.

Description: The purpose of this paper is to set forth a precise method of testing reserves based upon the time-honored accumulation formula, which requires the production of reserves and transactions by attained age.

Description: This predictive modeling for life insurers paper, “Predictive Model Learning of Stochastic Simulations” by John Hegstrom is one of a collection of essays that examine how existing or new methods or models can be applied to the life insurance industry.

Description: The primary purpose of this paper is to set forth one method of evaluating vested pension costs and to suggest a simple way for the actuary to make provision in his pension cost calculations for specific vesting schedules. From Transactions of Society of Actuaries 1966, Vol. 18, Pt. 1, No. 52.

Description: Traditional pension mathematics assumes that mortality rates are fixed at a valuation date. If mortality rates reduce after a valuation date, the liabilities of a defined benefit plans 'DB plans' increase, leading to deficits. Such deficits are somewhat unpredictable, because the evolution of mortality rates is a random process. This problem, which is often called longevity risk, makes the maintenance of DB plans difficult. The International Accounting Standards Board 'IASB' has plans to tackle the arduous problem of how to disclose longevity risk on financial statements. The IASB was established in 2001 to create universal accounting standards, called International Accounting Reporting Standards 'IFRSs'. A primary objective of this paper is to propose a number of methods that can help actuaries and plan sponsors quantify and disclose longevity risk.

Description: Provides a methodology for determining the value of the share of a particular individual in a joint and survivor annuity held by a trust.

Description: This is a discussion of the title paper by Eugene A. Rasor and Robert J. Myers. Included is an alternative proof of the theorem provided in the paper.

Description: This paper first discusses the history of the legislation of the joint and survivor benefits for the uniformed service personnel. It then goes on to address the specific actuarial assumptions made and the formulas developed for applying these assumptions for adaptability to the UNIVAC. This paper closes with specific programming procedures involved in using the UNIVAC.

Description: This predictive modeling paper, “Household Life Insurance Demand – A Multivariate Two-Part Model is one of a collection of essays that examine how existing or new methods or models can be applied to the life insurance industry.