4th line from the top- the core reading says: "Under this method (the attained age), the SCR is only appropriate for a closed scheme, and should not be recalculated due to the ageing af the membership'" Anyone can explain this please?
Hi Snowy The Attained Age method is a bit unusual in that the SCR actually overfunds the liabilities in most cases. This particular bit of core reading talks about when the Attained Age SCR would be just enough to fund the liabilities - ie when you have a closed scheme and you calculate the contribution rate once (at date of closure) and continue to pay the same rate for the remaining lifetime of the scheme. Section 5.2 of the course notes in Chapter 15 explain the "funnies" of the Attained Age method in more detail. Hope this helps. Elizabeth
