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.

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In the first year of its use, close to $100 million of favorable and sustained actuarial adjustments were made.

David Stills: Walmart Inc

scheme mimics the functioning of the DC arrangement in that it allows retirement within the age range 62-70, with actuarial adjustments relative to the pension benefit the individual is entitled to if she retires at the "normal" age of 67.

SOME NOTES ON THE REDISTRIBUTION INHERENT IN THE U.S. PUBLIC PENSION SYSTEM

Compared to last quarter, net income was down $94 million or 42%, as the prior quarter included favourable actuarial adjustments reflecting management actions and assumption changes.

Royal Bank of Canada reports first quarter 2016 results

Meanwhile, the bottom line for fiscal 2005 included a $6.7 million charge for legal settlements partially countered by a $2.8 million benefit from actuarial adjustments to self-insurance reserves.

Longs net surges 102% in fiscal '06

Fiscal 2006 net was buoyed by the abovementioned $6.6 million gain on the sale of the Lathrop facility, as well as $5.8 million of after-tax actuarial adjustments to self-insurance reserves.

Profit growth demonstrates longs is 'gaining traction'

To correct this incentive problem, there has been a move towards early retirement arrangements that are funded and that make actuarial adjustments to benefits that depend on the age of early retirement.

Retirement income arrangements. (Annex I)

The Value Equation allows employers to benchmark all its plans on various measures of cost and quality, specifically: baseline plan costs; actuarial adjustments; plan financial metrics, including debt and income (at for-profit plans); and quality performance.

Ask your health plan to say "ahhh"

The individual's effective time horizon determines his or her response to the earnings test for receipt of Social Security benefits and the actuarial adjustments of postponed benefits, including the delayed retirement credit.

Responses to social security by men and women: myopic and far-sighted behavior

One additional reason I question the validity of Niehaus's claims is that his model omits key factors for pension claim valuation--such as actuarial adjustments, employee age, duration of the pension claim--or any measure of pension claim risk in relation to some economy-wide benchmark.

Duration, systematic risk, and employee valuation of default-free pension claims: reply

The studies, conducted by Coopers & Lybrand on behalf of the Financial Executives Institute, the Institute of Management Accountants and the National Association of College and University Business Officers, indicated the health care claims administration systems of most employers, particularly small and medium-sized ones, are incapable of providing sufficiently reliable information to eliminate the need for actuarial adjustments to historical claims data.