ERM for Pension Funds [21]

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Bullet points include: Determine actuarial deficit (given a specified valuation methodology, e.g. a wind-up basis). Compare with net asset value of sponsor. Some issues if: IORP has claim only on an 'inappropriate' part of a wider organisation (e.g. a lowly capitalised entity or one outside the legal reach of scheme/regulator). Covenant is not legally enforceable. But how relevant is this calculation to what might be the position if and when the sponsor does default or run into trouble? Actuarial Deficit* Assets. Actuarial value of liabilities* Non-technical

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