8R - SOA #6
this is for the 2005 exam. the model answer here is very detailed. regarding the advantages of a private pension plan to governments, one point it makes (see point #7) is that since such plans are funded, it provides more tax revenue to the government? how is that possible? especially when in conclusion the point is made on how the deductiblity of employer contributions and benefits results in loss of tax revenue to the government.
also, the first part of the answer talked abt "general questions when establishing socialized/privatized plans". i dont think this was required at all since the question only asked for adv/disadv of the two types of set ups. *sigh.
btw, nice to see a lot of activity from the pension people!
Last edited by Sifto; 10-09-2006 at 10:52 PM..