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  #1  
Old 03-28-2017, 10:42 PM
EK56 EK56 is offline
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Default Actuarial Cost Methods

Hello,

a short question about names : Is the "Projected Benefit Cost Method" just another name for "Projected Unit Credit Cost Method"(PUC) ?

Gracias y Saludos,

Ralf
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Old 03-29-2017, 11:12 AM
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Probably, but can you provide some context?
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Old 03-29-2017, 11:34 AM
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Default Follow up: Actuarial Cost Methods

Dear Friends, dear Kenny, I am studying "Pension Mathematics with Numerical Illustrations" by Winklevoss (ProVal is from his company). It's a very old edition. He discusses there "Accrued Benefit Cost Method", what's a different name for the UC method, and "Projected Benefit Cost Method". Here the NC remain constant, either as dollar amount or as a percentage of salary, throughout the individuals period of credited service, provided there are no benefit increases or other plan revisions.

Saludos

Ralf
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Old 03-29-2017, 01:43 PM
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Sounds like 'Projected Benefit Cost Method' is the same as 'Entry Age Normal Cost Method'. Under this method, the normal cost remains the same every year (or increases with salary) if actuarial assumptions are met and the projected benefit never changes.

Under Projected Unit Credit, the normal cost increases with interest every year (under the same assumptions as above).
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Old 03-29-2017, 01:55 PM
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I agree with Dan. For what that's worth. Haven't done pensions for decades.
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