Description: This paper is designed to be a single reference source for an actuary who wants to increase his or her understanding of a Guaranteed Investment Contract 'GIC', its risks, and how to control them. The paper emphasizes the practical difficulties of matching asset and liability cash flows and discusses in detail how the sponsor and/or participants of the plan being funded by the GIC can antiselect against the insurance company. It also discusses how the actuary should go about pricing and reserving for GICs. From Transactions of Society of Actuaries 1984, Vol. 36.

Description: Many pension funds have recently established dedicated or 'matched' portfolios. These are portfolios of fixed-income securities whose cash flows from interest and maturities match the expected benefit payment stream on a block of liabilities. With particular reference to ERISA, this paper explores the actuarial mechanics of pension funding under dedication, including the selection of assumptions, the valuing of assets, funding of the initial change in unfunded liability, and funding of subsequent gains and losses. From Transactions of Society of Actuaries 1983, Vol. 35.