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EOSB Actorly Report Template

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An actuarial valuation is a type of appraisal of a pension fund's assets versus liabilities, using investment, economic, and demographic assumptions for the model to determine the funded status of a pension plan. The assumptions are based on a mix of statistical studies and experienced judgment. Since assumptions are often derived from long-term data, unusual short-term conditions or unanticipated trends can occasionally cause deviations from forecasts.  

 

KEY TAKEAWAYS

  • Actuarial valuations are used to assess the funded status of a defined-benefit pension fund.
  • Unlike market values, actuarial values rely on statistical inference and assumptions that are plugged into a model.
  • Actuarial models rely on long-term projections that include interest rates, demographic changes, and inflation.

 

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NN-2443-JZGRL
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