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

Access to Capital Markets and Ownership Structure  Ownership Structure A dividend policy may be driven with Time Ownership Structure as like in small firms whereas manage

Define Meaning of Investment Meaning of Investment: Investment involves making of a sacrifice in the present with hope of deriving future advantages. Investment has many


Disadvantages of Debt Finance It is a conditional finance that is it is not invested along with any approval of lender. Debt finance, whether used in excess may interr

Attributes of venture capital Equity participation Venture Capital participates with direct purchase of shares or fixed return securities as debentures and prefere

on this sentence: "all have an interest in understanding what drives trade" please explain what''s meaning of "what drives trade"?

Company XYZ stock is considering the two new projects, Project A and Project B. The two projects have similar risk characteristics as the existing business. The managers forecast t

Example of Miller-Orr Model XYZ's management has put the minimum cash balance to be equivalent to Sh.10, 000. The standard deviation of daily cash flow is of Sh.2, 500 and the

The Audiology Department at Randall Clinic offers many services to the clinic’s patients. The three most common , along with cost and utilization data, are as follows: Service Var