Hi I've been looking at the ASET solutions for the above questions and am slightly confused by an apparent inconsistency. In both cases we are told that there have been no changes no membership between two valuation dates. In the 2005 paper we have to work out the actuarial gain/loss for different categories of members over the three years and the solution allows for some deaths in the pensioner calculation (using an estimated probability of survival). However in the 2007 paper, where we have to calculate the expected pensioner liability, no allowance for deaths is made. I was just wondering why a different approach is taken....... Thanks
Hi In practice, the A07 approach could have been used to tackle the S05 question (in fact that is what the examiners did). In the S05 ASET solution, the allowance for survival is to estimate the annuity that would apply to the membership (given that it had aged by three years), rather than to allow for deaths in the membership since the last valuation. Hope this helps.
