T
The AA
Member
Hi there
The DABM method- am I correct in thinking that as under this method you
assume all actives leave on v-date and give them revaluation rate increases
to NRA, this method is less prudent than the AAM and PUM, as they target a
fund with salary increases to NRA.
Also when you come to do the next valuation your Actuarial liability (i.e.
Past service reserve as at last V-date excluding accrual between valuations) would increase as salary increases are likely to be higher than revaluation increases which would lead to a deficit!
I'm a bit confused- i cant think why you would use the DABM for scheme which is open to future accrual.
Finally how would the SCR be calculated? Would you use PUM?
The DABM method- am I correct in thinking that as under this method you
assume all actives leave on v-date and give them revaluation rate increases
to NRA, this method is less prudent than the AAM and PUM, as they target a
fund with salary increases to NRA.
Also when you come to do the next valuation your Actuarial liability (i.e.
Past service reserve as at last V-date excluding accrual between valuations) would increase as salary increases are likely to be higher than revaluation increases which would lead to a deficit!
I'm a bit confused- i cant think why you would use the DABM for scheme which is open to future accrual.
Finally how would the SCR be calculated? Would you use PUM?