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Impact of Actuarial Assumptions on Pension Costs A Simulation Analysis

This study investigates the sensitivity of pension costs to changes in the underlying assumptions of a hypothetical pension plan in order to gain a perspective on the relative importance of the various actuarial assumptions via a simulation analysis. Simulation analyses are used to examine the impac...

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Main Authors: Shaira, Yusof,, Rose Irnawaty, Ibrahim,
Format: Conference Paper
Language:en_US
Published: Amer Inst Physics 2015
Subjects:
pension costs
Accrued Benefit Cost Method
constant amount modification
constant percentage of salary modification
Online Access:http://ddms.usim.edu.my/handle/123456789/8956
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spelling my.usim-89562015-08-05T03:01:00Z Impact of Actuarial Assumptions on Pension Costs A Simulation Analysis Shaira, Yusof, Rose Irnawaty, Ibrahim, pension costs Accrued Benefit Cost Method constant amount modification constant percentage of salary modification This study investigates the sensitivity of pension costs to changes in the underlying assumptions of a hypothetical pension plan in order to gain a perspective on the relative importance of the various actuarial assumptions via a simulation analysis. Simulation analyses are used to examine the impact of actuarial assumptions on pension costs. There are two actuarial assumptions will be considered in this study which are mortality rates and interest rates. To calculate pension costs, Accrued Benefit Cost Method, constant amount ( CA) modification, constant percentage of salary ( CS) modification are used in the study. The mortality assumptions and the implied mortality experience of the plan can potentially have a significant impact on pension costs. While for interest rate assumptions, it is inversely related to the pension costs. Results of the study have important implications for analyst of pension costs. 2015-08-05T03:01:00Z 2015-08-05T03:01:00Z 2013-01-01 Conference Paper 9780-7354-1150-0 0094-243X http://ddms.usim.edu.my/handle/123456789/8956 en_US Amer Inst Physics
institution Universiti Sains Islam Malaysia
building USIM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universit Sains Islam i Malaysia
content_source USIM Institutional Repository
url_provider http://ddms.usim.edu.my/
language en_US
topic pension costs
Accrued Benefit Cost Method
constant amount modification
constant percentage of salary modification
spellingShingle pension costs
Accrued Benefit Cost Method
constant amount modification
constant percentage of salary modification
Shaira, Yusof,
Rose Irnawaty, Ibrahim,
Impact of Actuarial Assumptions on Pension Costs A Simulation Analysis
description This study investigates the sensitivity of pension costs to changes in the underlying assumptions of a hypothetical pension plan in order to gain a perspective on the relative importance of the various actuarial assumptions via a simulation analysis. Simulation analyses are used to examine the impact of actuarial assumptions on pension costs. There are two actuarial assumptions will be considered in this study which are mortality rates and interest rates. To calculate pension costs, Accrued Benefit Cost Method, constant amount ( CA) modification, constant percentage of salary ( CS) modification are used in the study. The mortality assumptions and the implied mortality experience of the plan can potentially have a significant impact on pension costs. While for interest rate assumptions, it is inversely related to the pension costs. Results of the study have important implications for analyst of pension costs.
format Conference Paper
author Shaira, Yusof,
Rose Irnawaty, Ibrahim,
author_facet Shaira, Yusof,
Rose Irnawaty, Ibrahim,
author_sort Shaira, Yusof,
title Impact of Actuarial Assumptions on Pension Costs A Simulation Analysis
title_short Impact of Actuarial Assumptions on Pension Costs A Simulation Analysis
title_full Impact of Actuarial Assumptions on Pension Costs A Simulation Analysis
title_fullStr Impact of Actuarial Assumptions on Pension Costs A Simulation Analysis
title_full_unstemmed Impact of Actuarial Assumptions on Pension Costs A Simulation Analysis
title_sort impact of actuarial assumptions on pension costs a simulation analysis
publisher Amer Inst Physics
publishDate 2015
url http://ddms.usim.edu.my/handle/123456789/8956
_version_ 1645152507439087616
score 13.222552

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