Actuarium

Formula sheets

Every formula on the syllabus, rendered natively, with the traps examiners set for each. Print one per exam and keep it by your desk.

RET DA — Retirement Benefits — Design & Accounting (U.S.)

SOA

Unit credit   ALx=Bx⋅a¨r(12) vr−x r−xpx,NCx=bx⋅a¨r(12) vr−x r−xpx\;AL_x=B_x\cdot\ddot a^{(12)}_{r}\,v^{r-x}\,{}_{r-x}p_x,\qquad NC_x=b_x\cdot\ddot a^{(12)}_{r}\,v^{r-x}\,{}_{r-x}p_x

Entry-age normal (level % pay)   NC=PVFBePVFSe⋅Sx\;NC=\dfrac{PVFB_e}{PVFS_e}\cdot S_x

Net periodic pension cost   =SC+IC−ER+Amort(PSC)+Amort(gain/loss)\;= SC+IC-ER+\text{Amort(PSC)}+\text{Amort(gain/loss)}

Corridor amortisation   max⁡ ⁣(0,∣G/L∣−10%max⁡(PBO,Assets))avg future service\;\dfrac{\max\!\big(0,|G/L|-10\%\max(PBO,\text{Assets})\big)}{\text{avg future service}}

Funded status   =Plan assets−PBO\;=\text{Plan assets}-PBO

Traps to remember

  • Confusing projected unit credit (salary projected) with traditional unit credit.

  • Amortising the full gain/loss instead of the excess over the corridor.

  • Forgetting settlement accounting when recommending a lump-sum window.

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