Actuarial Surplus

Actuarial Surplus

A measure of the amount by which the value of a company's pension fund exceeds the amount it must pay out in benefits. This should not be confused with an actuarial gain, which occurs when a company pays out less than expected. That is, a company can have an actuarial gain (and pay out less than it estimated) without having an actuarial surplus and vice versa.
References in periodicals archive ?
5 percent from its actuarial surplus income as bonus to policyholders which is added to on with-profit policies of the valued policyholders and the remaining 2.
While an actuarial surplus is not an issue affecting many schemes currently, if it becomes relevant again in the future, the retention of any option for the repayment by the trustees of a surplus to an employer should be addressed as soon as possible, before the deadline under section 251 of the Pensions Act 2004 takes effect on April 6, 2011.
Any actuarial surplus after payment of pensions and contracted increases was to go to the Government.
Indeed, the record of the past 30 years provides evidence of precisely this process at work: Although the 1983 Social Security reforms left the system with a slight actuarial surplus over the next 75 years, the program's actuarial deficits have worsened considerably since.
County officials said their last offer asked the union to delay further action until officials could study its retirement plan and actuarial surplus.
Positive investment and actuarial experience had produced an actuarial surplus.
Also, part of the actuarial surplus was used to enhance the pension benefits for existing retirees, who will now enjoy a cost-of-living benefit that was not previously provided.
Very strong employees votes were obtained in the conversion elections, and part of this city's experience was attributed to a more generous distribution of the actuarial surplus, which was deliberately distributed in ways to assure that most if not all employees were held harmless in making the transition.
It seems that the controversy over the ownership persists in Canada, Japan and the United Kingdom with only the Netherlands appearing to accept that "the surplus due to favorable conditions is seen by the pension funds as a temporary actuarial surplus for financing future cost increases".
As a result of a 1994 pension obligation bond issue and moderate benefits, the city's two pension systems are over-funded, which has enabled the city's annual contribution to be paid from the actuarial surplus until this year.
IMI's three-year pension valuation showed an actuarial surplus of pounds 51 million, or six per cent above its liabilities, in March last year, Mr Allen reports in his chairman's statement.