What is dependency ratio and why is it important, Finance Basics

Question 1:

a) What is dependency ratio and why is it important for pensions?

b) For which types of schemes is dependency ratio mostly relevant? Explain

c) What is the global trend and forecast re dependency ratio in developed nations?

d) What are the factors that explain this trend in dependency ratio?

e) What are the measures available to mitigate the impact of changes in dependency ratio on pension costs?

Question 2:

You are contacted by an employee who wants details on defined contribution (DC) and defined benefit (DB) schemes.

a) Explain in very simple terms, using examples, how each of a DB and a DC scheme work.

b) List down the relative merits of each of a DB and DC scheme to the employee.

Question 3:

You are carrying out the annual actuarial valuation of the XYZ defined benefit pension scheme which pays a pension to the member and in case the pensioner dies, the pension continues to be paid to the surviving spouse and children till age 18. The scheme has active and deferred members and pensioners.

a) List down all the parameters for which you will need to formulate an assumption

b) What are the minimum data fields required to be able to carry out the actuarial valuation?

c) What are the data checks to be carried out prior to running the valuation, assuming you have the previous year's data?

Posted Date: 12/4/2013 2:11:02 AM | Location : United States







Related Discussions:- What is dependency ratio and why is it important, Assignment Help, Ask Question on What is dependency ratio and why is it important, Get Answer, Expert's Help, What is dependency ratio and why is it important Discussions

Write discussion on What is dependency ratio and why is it important
Your posts are moderated
Related Questions
Define the direct finance and indirect finance in markets. In direct finance, borrower-spenders borrow funds directly by lenders into the financial markets through selling them

Financial Intermediaries These are institutions that link or mediate between the investors and savers: Some examples of financial intermediaries are as follow: 1. Comme

whom do you think rajendra should eat with and why

(a) RBC has 100 loans outstanding, each for $1 million, which it expects to be repaid today.  Each loan has a 5% probability of default, in which case the bank is not repaid anythi

Access the relevant authoritative literature on accounting for the transfer of financial assets. What conditions must be met for a transfer of receivables to be accounted for as a

Leverage and Coverage Ratios   (The data for interest coverage are in I-Metrix's liquidity ratios section.  The others listed in this table are in the leverage ratios section

purchase a machine worth Shs.1,500,000 which will have a residue value Shs.200,000 after 5 years useful life. The saving in cost resulting from the use of this machine are: Sh


Cash and Bonus Issue - Dividend For a firm to pay cash dividends, it should contain adequate liquid funds.Though, under conditions of liquidity and financial constraints, a fi

Selection of Remuneration Policy The alternative of a suitable remuneration policy through a company will depend, with another thing, on: 1. Cost: the extent to that the p