02-23-2005, 08:23 PM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">
Purchase an 'off-the-shelf' policy from an insurance company, so that the trustees simply hand over the contributions to an insurance company, and the insurance company's actuary will advise on the level of contributions relative to the benefits promised.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
It adds unnecessary cost to the pension trustees. Also, insurannce actuarial valuations are usually different than that of pension actuaries. Although, the IAA is trying to adopt similar approaches that of Accounting bodies to maintain the consistencies in valuations.
I would say its a good strategy but people would adapt it for DC schemes not for DB.
Purchase an 'off-the-shelf' policy from an insurance company, so that the trustees simply hand over the contributions to an insurance company, and the insurance company's actuary will advise on the level of contributions relative to the benefits promised.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
It adds unnecessary cost to the pension trustees. Also, insurannce actuarial valuations are usually different than that of pension actuaries. Although, the IAA is trying to adopt similar approaches that of Accounting bodies to maintain the consistencies in valuations.
I would say its a good strategy but people would adapt it for DC schemes not for DB.
