R
RR864
Member
I just had a skim re-read of ch.14 (Discontinuance) and also of GN19.
The version of GN19 in the appendix says that in calculating the debt on the employer "the actuarial value of benefits for active members and for deferred pensioners should be calculated using the same basis as the actuary employs in the calculation of CETVs".
The core reading in chapter 14 says the payment of any debt aims to ensure the scheme has sufficent funds on the date of calculation to meet the cost of immediate annuities for current pensioners and purchasing deferred annuity contracts for other members.
If the debt is calculated in line with GN19, i.e. calculate CETVs for non-pensioners then how can this meet the cost of deferred annuities. A typical CETV would be insufficent to buy a deferred annuity.
Have I missed something??
The version of GN19 in the appendix says that in calculating the debt on the employer "the actuarial value of benefits for active members and for deferred pensioners should be calculated using the same basis as the actuary employs in the calculation of CETVs".
The core reading in chapter 14 says the payment of any debt aims to ensure the scheme has sufficent funds on the date of calculation to meet the cost of immediate annuities for current pensioners and purchasing deferred annuity contracts for other members.
If the debt is calculated in line with GN19, i.e. calculate CETVs for non-pensioners then how can this meet the cost of deferred annuities. A typical CETV would be insufficent to buy a deferred annuity.
Have I missed something??