Deferred judgement



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

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: