Indicates either or both of the valuation method and the actuarial assumptions made for the purpose of an actuarial valuation.
Tag: RAW
Actuarial certificate
Issued by an actuary arising out of actuarial work. The work may include: (a) carrying out the solvency test required by some contracted out schemes; (b) certifying to the IR that pension scheme surpluses have been dealt with as required under ss.599A602, ICTA 1988; (c) the position on the minimum funding requirement under the Pensions Act 1995 ss.56-60; (d) the bulk transfer certificate under Regulation 12 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (SI 1991/167).
Actuarial cost method
Method of calculating the annual amount a plan sponsor must contribute to fund a specific set of defined benefit pension plan (DBPP) benefits for a group of participants.
Actuarial deficiency
Amount by which the actuarial valuation of a pension scheme’s assets is less than the actuarial liability.
Actuarial deficit
Negative actuarial balance.
Actuarial department
Section in a life and health insurance company that oversees the company and is operated on a mathematically sound basis. This department calculates premium and dividend rates, establishes a company’s reserve liabilities, and figures nonforfeiture, surrender, and loan values. Its research predicts mortality and morbidity rates, and this helps sets the guidelines for selecting risks and establishes the profits of the company’s products.
Actuarial firm
For FSMA purposes, it is a firm (including a sole practitioner) that is managed and/or controlled by individuals who are members of the Institute of Actuaries or Faculty of Actuaries and who are entitled to practise the profession of actuary (typically a consulting firm). Actuarial firms that carry on regulated activities must either become an authorised professional firm to carry on regulated activities, or apply to the Institute for a designated professional body (DPB) licence. The activities are then classed as exempt regulated activities as set out in the DPB Handbook as they are incidental to the firm’s professional services.
Actuarial function
A required FSA function. See APPOINTED ACTUARY.
Actuarial increase
The extra pension granted to a pension scheme member who has deferred his pension beyond normal retirement age.
Actuarial liability
The amount, using actuarial assumptions and methods, a pension scheme will have to pay out as pension benefits and expenses after the date of the actuarial valuation. It includes the present value of instalments of pensions in payment and related contingency benefits, the present value of future payments in respect of deferred pensioners and a provision for all active members.