Introductory presentations on pension plans often begin with an explanation that there are two kinds of pension plans: defined contribution and defined benefit. The problem with this starting point is that none of it is true.
Reserve funds are used by condominiums to manage future repair and replacement costs. Actuarial work has traditionally been associated with reserves for insurance companies – but can these techniques be applied to condo reserves as well? Jon Juffs, co-author of a new CIA research paper, and Thomas Wendling, POG member for this research project, say yes.
Reserve funds are used by condominiums to manage future repair and replacement costs. Actuarial work has traditionally been associated with reserves for insurance companies – but can these techniques be applied to condo reserves as well? Jon Juffs, co-author of a new CIA research paper, and Thomas Wendling, POG member for this research project, say yes.
New research by the Canadian Institute of Actuaries reveals that low reserve fund contributions will likely lead to overwhelming annual increases and require lump-sum payments from owners to cover shortfalls, and could potentially lead to the loss of homes, especially in the context of rising interest rates.
What considerations should actuaries have when selecting the going concern discount rate for pension plans? Gavin Benjamin, FCIA, explores this topic in his member’s paper Going Concern Discount Rate for Pension Plans With High Asset Allocation to Bond and shares some of his research on Seeing Beyond Risk. Hosted by Ping-Teng Lin, FCIA.
Canadian Institute of Actuaries
360 Albert Street, Suite 1740
Ottawa, Ontario K1R 7X7
SeeingBeyondRisk@cia-ica.ca