Common use of Liability Amount Clause in Contracts

Liability Amount. The present value of the Transferred Liabilities calculated using the assumptions set out in the table below using member data and market conditions as at the Exit Date: Assumption Derivation Pre-retirement discount rate Based on the return seeking strategic asset allocation endorsed at the March 2018 Funding & Investment Committee meeting for the GE UK Pension Plan and the projected returns under the Yield Reversion ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Investment Model (“WTWIM”) relative to RPI inflation over a 10-year period at a confidence level of 70%. The discount rate is rounded to the nearest 0.05%. The strategic asset allocation is as follows: Total return-seeking (66%): Equities = 29% Alternatives = 28% Property = 9% Total Matching (34%). Post-retirement discount rate (current pensioners) A single equivalent gilt yield plus a margin of 0.5% pa, where the single equivalent yield is derived based on the projected cashflows of the current pensioner population and the full gilt yield curve. The discount rate is rounded to the nearest 0.05%. For this purpose, the gilt curve used is the ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ index-linked gilt yield plus RPI (as defined below). Post-retirement discount rate (future pensioners) A single equivalent gilt yield plus a margin of 0.5% pa, where the single equivalent yield is derived based on the projected cashflows of the future pensioner population and the full gilt yield curve. The discount rate is rounded to the nearest 0.05%. For this purpose, the gilt curve used is the ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ index-linked gilt yield plus RPI (as defined below). Retail Price Inflation (RPI) Market implied inflation at a duration consistent with that of the duration of the GE UK Pension Plan population, rounded to the nearest 0.05% pa Consumer Price Inflation (CPI) Set equal to RPI less 1% pa Salary increases Set equal to RPI Pension increases Derived in line with the relevant inflation definition and allowing for the relevant caps and floors using the Black model with an underlying RPI volatility assumption of 2.3% pa and an underlying CPI volatility assumption of 1.9% pa, all rounded to the nearest 0.05% pa Mortality assumption – base table 92% of SAPS S2 Normal Health base tables for both males and females with CMI 2017 projections from 2007 to 2018 with a long term trend of 1.50% pa Mortality assumption – future improvements CMI 2017 projections from 2018, with a 1.50% pa long term trend rate Cash commutation 20% of pension is assumed to be commuted using GE UK Pension Plan cash commutation factors in force at the Exit Date. Other assumptions Derived in line with the GE UK Pension Plan Technical Provision assumptions for the March 31, 2015 actuarial valuation.