Can someone please clarify what exactly the option is and how its costed? I've read the question and solution a couple of times but it is still not clear to me.... A working example would probably help. Please help
Hi At retirement members are given the option to either receive their full pension (for example X a year) or a reduced pension (let's call it aX with a<1), but with the provision of an additional pension (maybe Y per annum) payable to a dependant on the member's death. Hope this helps.
