Actuarial Gains and Losses

(redirected from Actuarial Loss)

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.
References in periodicals archive ?
"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.S.
* Provision of technical ancillary services in areas such as brokerage and actuarial loss assessment
"Other areas of increased cost seen in 2008, mainly aluminium, steel and adverse currency translation effects, fortunately stabilised in the second half of 2009 and so contributed to the improved result." The company paid out dividends of pounds 2.91m, while there was a pounds 5m actuarial loss on its pensions.
While this might make sense from an actuarial perspective, it can foreclose on a creative alternative--using stochastic modeling to determine the likelihood of losses in a layer, perhaps $250,000 or $500,000, immediately above the captive's per occurrence retention, where actuarial loss projections have little credibility.
If the actual return on the plan assets is less than the expected return, there is an actuarial loss. These actuarial gains and losses are amortized if they exceed 10 percent of the greater of the PBO or Plan Assets.
Its accounts just filed at Companies House also showed it made an actuarial loss of pounds 66.6m on its pension scheme.
The feasibility study will recommend a program design for the captive, provide an actuarial loss forecast, estimate all expenses and show a series of captive financial statements.
Full browser ?