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Actuarial Adjustment |
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Actuarial Adjustment In insurance and pensions, a change made to a company's premiums, reserves, or finances based on actual or expected changes to the benefits it must pay out. For example, if a disproportionate number of pensioners retire early, the company providing their pensions must adjust its reserves downward and/or its premiums upward to account for the benefits it must pay before it expected to do so. A company may also make actuarial adjustments to benefits themselves; for example, those persons retiring early may find their monthly pension payments are less than expected. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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