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 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 section presents book reviews and summaries of recent publications. Reviews: '1975 Annual Reports of the Board of Trustees of the Federal OASDI Trust Funds...' by the US Congress, 'Providing Adequate Retirement Income' by Schulz, Carrin, Krupp, Peschke, Sclar and Steenberge, 'Ernst & Ernst GAAP - Stock Life Companies' by Posnak, 'Reports of the Quadrennial Advisory Council on Social Security' by US Government, 'Fundamentals of Private Pensions' by McGill. Digests also included.

Description: A new approach to computing annual pension costs, based on an open-group projection of the participant population for a number of years, was described in detail in a paper published in the 1975 Transactions, entitled 'The Forecast Valuation Method for Pension Plans.' That paper described the operation of such a cost method at the initial valuation date. This paper discusses several alternative approaches to projection valuation methods and also describes how costs should be computed at valuation dates after the first one. In addition, the author illustrates projected contributions and asset buildups under both traditional [closed-group] cost methods and projected [open-group] cost methods, for a number of years under a variety of assumptions as to the growth rate of the participant group. Projection valuation methods have not been described heretofore in sufficient detail to make it possible for actuaries to use them on a recurring basis or for the Internal Revenue Service to make a determination as to the acceptability of such approaches for computing tax-deductible pension plan contributions. It is the hope of the author that this paper will fill both of those gaps. From Transactions of Society of Actuaries 1977, Vol. 29.

Description: This is a discussion of the title paper by Raymond F. Houseman, which provides some practical aspects of various funding methods. The paper is critiqued, and some alternative methods are discussed.

Description: In this paper, a general model for a pension plan involving growth with respect to the population, salaries, and retirement benefits is used to study contribution patterns that may arise under different actuarial cost methods. Detailed results are presented for the case where the growth of population and the growth of salaries are described by exponential functions. Economic implications are presented and discussed. From Transactions of Society of Actuaries 1979, Vol. 31.

Description: This paper surveys the actuarial techniques connected with salary scale mathematics for the valuation of defined benefit pension plans. Followed by several discussion papers submitted

Description: This is a discussion of the paper Fundamentals of Pension Funding by Charles L. Trowbridge. From Transactions of Society of Actuaries 1952, Vol. 4, No. 10.

Description: Digests of following discussions: 1. Mutual life insurance companies - their objectives and operating philosophy 2. State, provincial, and municipal employee pension plans - financing and other problems 3. Mortality and underwriting of individual policies for large amounts 4. Investing during the 1970's 5. Long-range viability and regulation of corporate pension plans 6. Forecasting the environment for business 7. Liabilities and surplus in the 1970's 8. Changing modes of family life - work and income over the life cycle 9. The role of the actuary in collective bargaining 10. Health insurance in the United States 11. Adjusted earnings

Description: This paper examines the valuation of assets and poses the following questions: A. What bases, other than cost or market, are in use for valuing pension trust assets and acceptable under the Internal Revenue Code and Rulings? and B. How can a retirement plan having assets valued on a book or cost basis utilize existing unrealized appreciation for purposes of improving benefits or reducing current funding costs without changing to a market value basis? From Transactions of Society of Actuaries 1961, Vol. 13, Pt. 2.