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Actuarial Adjustment
(redirected from Actuarial Adjustments)

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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.


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It also reflects the effects of a change in the timing of actuarial adjustments for insurance expense, which resulted in a reduction in favorable actuarial adjustments compared to the prior year quarter.
Pension Reforms to Enhance Employment If the disincentives to continue working were removed from Canada's public pension regime, workers could decide when to retire without being penalized through insufficient actuarial adjustments.
For workers age 62 or older there are also the actuarial adjustments that follow from the postponement of retirement besides the additional labor earnings.
 
 
 
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