Prospective benefits valuation method

Method under which the actuarial liability is the present value of: (a) the benefits for current and deferred pensioners and their dependants, allowing for any future increases; and (b) the benefits which active members will receive for both past and future service, allowing for projected earnings up to their expected leaving dates and, if appropriate, increases thereafter, less the present value of future contributions in respect of current members at the standard contribution rate.

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