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.
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Further, State Life distributes its actuarial surplus @97.5% to its policyholders and the total assets of SLIC reached Rs830 billion.
A statement here on Tuesday said that the State Life declared 97.5% of its actuarial surplus as Bonus to with-profit policy holders every year.
Further, she said that State Life distributes 97.5% of its Actuarial Surplus to its policyholders.
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.
Since it's really the plan's actuarial surplus or deficit, not its assets alone, that drives the financial impact of the plan on the sponsor, that's what LDI looks at to construct its asset allocation strategy.
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.
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.
The expected discounted value of the fund's receipts less its expenditures is the actuarial surplus of the fund.
KARACHI -- State Life declares 97.5% of its actuarial surplus as Bonus to with-profit policy holders every year.
He said that NBP has selected SLIC to be the Business partner for product of Bancassurance as State Life is the only corporation which offers conventional life products with 97.5% of its actuarial surplus returned to the policy holders by way of bonuses.
He also informed that State Life yearly allocates 97.5 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 2.5 percent is invested in Government of Pakistan's long term economic plans.