Analysis of changes in total actuarial liabilities using projected unit credit method
Malaysia is projected to become an ageing country by the year 2030 with the increase in population of older people to be over 15.3%. It is affecting the government expenditure in the sustainably of providing retirement benefits to older people. This study will analyse the changes of actuarial assump...
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| Format: | Article |
| Language: | en |
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Penerbit Universiti Kebangsaan Malaysia
2024
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| Online Access: | http://journalarticle.ukm.my/24101/1/15_22%20Paper_2.pdf http://journalarticle.ukm.my/24101/ http://www.ukm.my/jqma |
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| _version_ | 1834434863335211008 |
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| author | Rose Irnawaty Ibrahim, Ain Nurafifah Amran, |
| author_facet | Rose Irnawaty Ibrahim, Ain Nurafifah Amran, |
| author_sort | Rose Irnawaty Ibrahim, |
| building | Tun Sri Lanang Library |
| collection | Institutional Repository |
| content_provider | Universiti Kebangsaan Malaysia |
| content_source | UKM Journal Article Repository |
| continent | Asia |
| country | Malaysia |
| description | Malaysia is projected to become an ageing country by the year 2030 with the increase in population of older people to be over 15.3%. It is affecting the government expenditure in the sustainably of providing retirement benefits to older people. This study will analyse the changes of actuarial assumptions in total actuarial liabilities of a specific group of government employees. A data set is collected from a group of government employees in a Malaysian public university under service grade of N (Administration & Support). The total actuarial liability will be calculated using the Projected Unit Credit method and actuarial assumptions such as the retirement age, mortality rate, interest rate and salary growth rate will be considered. The study found that when the retirement age is increased, the total actuarial liabilities would decrease which is the aim of a sustainable pension system. Meanwhile, the decreasing mortality rate due to population ageing will cause the total actuarial liabilities to increase. Lastly, when interest rate is high and salary growth rate is lowered, the pension system is getting better. In conclusion, it is necessary for Malaysian government to take early action to sustain the Malaysian pension system due to the occurring population ageing. |
| format | Article |
| id | my-ukm.journal.24101 |
| institution | Universiti Kebangsaan Malaysia |
| language | en |
| publishDate | 2024 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | eprints |
| spelling | my-ukm.journal.241012024-09-06T00:42:13Z http://journalarticle.ukm.my/24101/ Analysis of changes in total actuarial liabilities using projected unit credit method Rose Irnawaty Ibrahim, Ain Nurafifah Amran, Malaysia is projected to become an ageing country by the year 2030 with the increase in population of older people to be over 15.3%. It is affecting the government expenditure in the sustainably of providing retirement benefits to older people. This study will analyse the changes of actuarial assumptions in total actuarial liabilities of a specific group of government employees. A data set is collected from a group of government employees in a Malaysian public university under service grade of N (Administration & Support). The total actuarial liability will be calculated using the Projected Unit Credit method and actuarial assumptions such as the retirement age, mortality rate, interest rate and salary growth rate will be considered. The study found that when the retirement age is increased, the total actuarial liabilities would decrease which is the aim of a sustainable pension system. Meanwhile, the decreasing mortality rate due to population ageing will cause the total actuarial liabilities to increase. Lastly, when interest rate is high and salary growth rate is lowered, the pension system is getting better. In conclusion, it is necessary for Malaysian government to take early action to sustain the Malaysian pension system due to the occurring population ageing. Penerbit Universiti Kebangsaan Malaysia 2024-07 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/24101/1/15_22%20Paper_2.pdf Rose Irnawaty Ibrahim, and Ain Nurafifah Amran, (2024) Analysis of changes in total actuarial liabilities using projected unit credit method. Journal of Quality Measurement and Analysis, 20 (2). pp. 15-22. ISSN 2600-8602 http://www.ukm.my/jqma |
| spellingShingle | Rose Irnawaty Ibrahim, Ain Nurafifah Amran, Analysis of changes in total actuarial liabilities using projected unit credit method |
| title | Analysis of changes in total actuarial liabilities using projected unit credit method |
| title_full | Analysis of changes in total actuarial liabilities using projected unit credit method |
| title_fullStr | Analysis of changes in total actuarial liabilities using projected unit credit method |
| title_full_unstemmed | Analysis of changes in total actuarial liabilities using projected unit credit method |
| title_short | Analysis of changes in total actuarial liabilities using projected unit credit method |
| title_sort | analysis of changes in total actuarial liabilities using projected unit credit method |
| url | http://journalarticle.ukm.my/24101/1/15_22%20Paper_2.pdf http://journalarticle.ukm.my/24101/ http://www.ukm.my/jqma |
| url_provider | http://journalarticle.ukm.my/ |