An actuarial calculation uses the actuarial present value (APV) to determine the cost of providing future benefits. The APV means the value of expected benefits in terms of the amount of money the Police & Fire Plan must have on hand today to pay for the benefits in the future. The actuarial assumptions (such as life expectancy, rates of retirement, disability, and termination, future salary increases, and expected investment returns) used in this calculation are those currently used to value the Police & Fire Plan’s assets.
What is an “actuarial calculation”? Print
Modified on: Sat, 23 Nov, 2019 at 11:34 PM
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