1. 

   Snowy Member

   For the EAAL - how come we don't subtract 11%*(117million)?

    

   Snowy, Nov 22, 2009

   #1
2. 

   Snowy Member

   Instead of subtracting 11%*(9million)

    

   Snowy, Nov 26, 2009

   #2
3. 

   Gresham Arnold ActEd Tutor Staff Member

   Remember that the formula for the EAAL is:
   
   PV (total benefits) - SCR x PV future salaries
   
   In v broad terms, this formula is saying that the amount that we need to have put aside now to pay the benefits is equal to the total cost of all the benefits less the contributions that will be paid in the future.
   
   Hope this helps

    

   Gresham Arnold, Mar 24, 2010

   #3

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