In the solutions I cant figure out why **actual salary growth rate for the ages is Av pensionable salary at this valuation/Av pensionable salary at last valuation/1.06(3 yr growth rate) When I initially solved the problem I had taken actual increase in salary on account of promotion to be say age 38 as 31374-(1.06*28980) I couldnt get the expected growth in salary.Had made a mistake there.They are just taking S38/S35 as expected growth rate. In order to get full marks I think column F is also required which I cant get because of ** Help
I'm not entirely sure what you're asking here, but, I think this material is covered in the course notes which might help. It's in the monitoring chapter right at the end of the course. If you identified the bookwork being tested this question becomes easier! Salary growth is normally measured as a percentage rather than an actual amount. I seem to think that's how it is taught in the CTs too (but that was a while ago!).
To work out the first column of the table - actual promotional sal growth over period is 31374/(28980*1.06)*100 =102.1% - expected promotional growth is s38/335= 238/223*100=106.7% - so actual/expected % is then 95.7% Hope that helps!
