Assumptions made by an actuary as a basis for the figures and estimates needed for an actuarial valuation. The assumptions are based around life expectancy, inflation, earnings levels and income from pension scheme investments. See ACTUARIAL REPORT.
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Mediical/US:1. Characteristics used in calculating the risks and costs of a plan (i.e., age, sex, and occupation of enrollees; location; utilization rates; and service costs) to calculate premium rates and reserves. 2. In relation to pension plans, these assumptions affect the amount of the yearly contribution to adequately fund a defined benefit pension plan (DBPP).