The assumptions to enhance the effective operations of the pension plan are of 2 types:
Economic assumptions: These deal with interest rates, salary increases, inflation and investment
markets. These assumptions are related to how the macro-economic environment will affect the pension plan calculations.
Demographic assumptions: These deal with the participant group make-up and expected behaviour and life
expectancy. These are specific to the people expected to participate in the pension plan and ho this will affect the pension plan calculations.
May 2nd, 2015
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