Deferred judgement

Features

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The further away that a defined-benefit pension is from the day of maturity, the more risk there is in managing the liabilities. This is particularly relevant when it comes to deferred members - and this uncertainty makes the topic a battleground. Two key parameters that feed into liability valuation are inflation of pension rights and long-term interest rates used for discounting purposes. Active scheme members have the longest pension duration - with the highest sensitivity to interest rat