I am just trying to understand how early termination values /males and females contribution rate can be imposed retrospectively when considering eventualities for scenario testings. Most models would just consider future cashflows. So, how are assumptions imposed retrospectively? Any idea? Thanks! (Core Reading Chpt 11 - Contract Design, key scenarios)
I'd say this means if new legislation comes in now it is applied to all current actives accrued benefits to date - ie not just in respect of benefits accruing from now on. So if legislation came in on 1.1.2008 applies to all tvs from that point on (including in respect of benefits accrued prior to 1.1.2008). This means an adjustment needs to be made to the assumptions used to place a value on accrued benefits as well as when assessing the costs of future accrual.
