A new set of managers has recently been appointed to a defined… A new set of managers has recently been appointed to a defined benefit pension scheme. The managers have little knowledge of actuarial valuations. They have asked the scheme’s actuary to provide them with a training session on the issues they should consider when setting assumptions for actuarial valuations. Write down the points that might be covered in the training session. Calculate the change in XYZ’s Free Surplus at the end of the year under: (i) YRT ceded arrangement where: The Net Amount At Risk is the Initial Face Amount YRT Ceded Premium = 40,000 for the year There is no reserve credit XYZ’s revised Investment Income will be 2,000 for the year. (ii) Coinsurance arrangement where: Expense Allowance = 25% of the ceded premium XYZ’s revised Investment Income will be 2,000 for the year. Show all work. (c) (3 points) ABC is going to perform cash flow testing on its assumed business from XYZ. Explain the responsibilities of ABC’s actuary under ASOP #23 – Data Quality with respect to: (i) False data (ii) Incomplete or inconsistent data Arts & Humanities Communications Marketing MARKETING 3141
