H
hi5
Member
For past service liabilities:
Its:
m/80 (multiply by)
salary factors (the S, s and the z....) (multiply by)
The probability employee will die at a time t (multiply by)
discount factor (multiply by)
annuity factor
We sum this for all values of t to get the past service liability.
NOW
for Future service liability why do we need to Sum the M bar Commutation factor (to get the R bar factor)
the CMP justifies this by saying:
"We now need to consider all of the future years of service".......
have these years of service not been considered when we summed the C Commutation factor. After all we did sum for all values of t; i.e. from 0 to NPA-x
Kindly can anyone pretty please explain this in words (instead of notation) as i did for the above Past service lib benefit valuation.
Its:
m/80 (multiply by)
salary factors (the S, s and the z....) (multiply by)
The probability employee will die at a time t (multiply by)
discount factor (multiply by)
annuity factor
We sum this for all values of t to get the past service liability.
NOW
for Future service liability why do we need to Sum the M bar Commutation factor (to get the R bar factor)
the CMP justifies this by saying:
"We now need to consider all of the future years of service".......
have these years of service not been considered when we summed the C Commutation factor. After all we did sum for all values of t; i.e. from 0 to NPA-x
Kindly can anyone pretty please explain this in words (instead of notation) as i did for the above Past service lib benefit valuation.