Effen
May 24 2007, 11:57 AM
If anyone has been doing projections beyond 2008, what are you using for estimated segment rates for Current Liability? At first, I was just using the RPA rate (5.78%) for all 3 segments, but I think that is a little low. An actuary at another firm recommended 5%, 5.6%, 6.1% for the 3 rates.
Anyone have any idea? What would the segments be based on current market conditions?
pax
May 24 2007, 04:33 PM
Effen,
I used the spreadsheet on the SOA page (which is updated monthly, I think), and averaged over the three periods. I got (rounded) 5.25%, 5.75%, 6.0%. (You may be able to justify a rate greater than 6%.)
Effen
May 25 2007, 07:36 AM
Thanks Pax, do you have a link to that worksheet? I searched the SOA site and couldn't find anything.
pax
May 25 2007, 04:49 PM
It is the "Pension Discount Curve and Liability Index" at this site:
http://www.soa.org/professional-interests/...es-pension.aspx