Actuarial Gains and Losses

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Actuarial Gains and Losses

The actual amount a company pays on its pensions compared to previous estimates. An actuarial gain occurs if the company pays less than it thought it would, while an actuarial loss happens if it pays more than expected. Actuarial gains and losses may result in a change to a company's actuarial assumptions. See also: Actuarial adjustment.
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Specifically, if their claims ratio and projected actuarial loss threaten the solvency of the business, they will be asked to raise premiums.
Pension Benefits 2011 2010 Amounts Recognized in AOCI: Unrecognized net prior service cost $(1,492) $(1,660) Unrecognized net actuarial loss (2,439) (1,777) Gross unrecognized cost at December 31 $(3,931) $(3,437) Minimum amortization method U.
91m, while there was a pounds 5m actuarial loss on its pensions.
Because the beginning deferred actuarial loss of $1,270 is larger than the $590 corridor (10% of beginning plan assets of $5,900), the $680 excess deferral ($1,270-$590) is divided by the five-year service period to produce the $136 one-time adjustment that is added to the year's pension cost and deducted from comprehensive income.
If the actual return on the plan assets is less than the expected return, there is an actuarial loss.
Some TPAs are concerned that actuaries are looking over their shoulders and that an actuarial loss reserve analysis will conclude that adjusters are not doing a good job.
Its accounts just filed at Companies House also showed it made an actuarial loss of pounds 66.
Finally, $1 million of actuarial loss is recognized in income for 2005.
SIRAM relies on actuarial loss projections and, therefore, is affected by factors that make actuarial loss forecasting less reliable.
2004 2003 $ $ Accrued benefit obligation, beginning of year 17,358 17,018 Current service cost 1,395 996 Interest cost 1,082 1,168 Benefits paid (1,584) (1,439) Actuarial loss 83 1,473 Corporate restructuring giving rise to: - Settlements - (1,858) Accrued benefit obligation, end of year 18,334 17,358 Fair value of plan assets, beginning of year 15,931 13,660 Actual return on plan assets 1,812 2,466 Employer contributions 1,668 2,448 Employee contributions 645 654 Benefits paid (1,584) (1,439) Corporate restructuring giving rise to: - Settlements - (1,858) Fair value of plan assets, end of year 18,472 15,931 Plan assets consist of: % % Asset Category Equity securities 67.
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