M
mammam87
Member
Hello
I don't quite understand the relationship between the answer in question 22.5 to the question itself. The question asks about a funding valuation, while the answer talks about PBO/ABO which is usually used for FAS87.
Also from what I understand, PBO and ABO both include non-accruing benefits, and that death in service lump sum benefit could be a non-accruing benefit (i.e. not related to service). So why is it that in the solution to Q 22.5, no allowance is made for death in service lump sums in PBO or ABO?
Thanks!
I don't quite understand the relationship between the answer in question 22.5 to the question itself. The question asks about a funding valuation, while the answer talks about PBO/ABO which is usually used for FAS87.
Also from what I understand, PBO and ABO both include non-accruing benefits, and that death in service lump sum benefit could be a non-accruing benefit (i.e. not related to service). So why is it that in the solution to Q 22.5, no allowance is made for death in service lump sums in PBO or ABO?
Thanks!