Actuarial Methods and Assumptions Sample Clauses
The "Actuarial Methods and Assumptions" clause defines the specific techniques and underlying assumptions that will be used to calculate financial values, such as reserves, premiums, or liabilities, within an agreement. This clause typically outlines which actuarial standards, mortality tables, interest rates, or other demographic and economic assumptions must be applied, and may specify who is responsible for selecting or updating these parameters. Its core practical function is to ensure consistency and transparency in financial calculations, reducing the risk of disputes by clearly establishing the basis for actuarial determinations.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and the plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short- term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long- term perspective of the calculations. In the actuarial valuation as of July 2011, the entry age normal actuarial cost method was used. The actuarial assumptions included a 7.25 percent investment rate of return, which is the expected long- term investment returns on the Department’s funds, a 3% general inflation assumption, an annual aggregate payroll increase rate of 3.25% and healthcare cost trend rate ranging from 8.9% to 5% through the year 2021. The UAAL is being amortized as a level dollar amount over 30 years on a closed basis starting June 30, 2010.
Actuarial Methods and Assumptions. The parties hereto agree that to the extent it is necessary to determine the actuarial present value of the Guaranteed Obligations, in all circumstances including a restructuring or insolvency of the Company, the actuarial methods and assumptions set forth in Appendix C of the Security Protocol shall be used and applied, mutatis mutandis, for such determination. For the purposes of this Section, the following terms shall have the following meanings:
(a) RCA Trust means the trust created pursuant to, and as defined in the RCA Trust Agreement, including all tangible and intangible assets and property of said trust fund of any nature or types as shall exist from time to time together with any earnings, profits, increments and accruals arising therefrom;
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between employer and plan members to that point. The most recent actuarial report has a valuation date of June 30, 2015, and remains valid for three years under GASB 45. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial assets, consistent with the long-term perspective of the calculations.
Actuarial Methods and Assumptions