The trend of future cost in group life and pension schemes

1952 ◽  
Vol 11 (01) ◽  
pp. 38-42
Author(s):  
W. Eschrich
Keyword(s):  
Pension Scheme ◽  
Future Cost ◽  
Life Assurance ◽  
Individual Employee ◽  
Pension Schemes ◽  
Group Life ◽  
Single Premium ◽  
The Cost ◽  
Pension Benefits ◽  
Deferred Annuity

The volume of group life and pension scheme business transacted by life offices in this country is considerable, and is increasing steadily. A great deal of work is being spent in the preparation of quotations for such schemes. Readers may, therefore, be interested in a method of reducing to a minimum an especially uninteresting part of the work arising in connexion with quotations for schemes in which the cost of pension benefits for future service or of life assurance benefits is calculated on the ‘single-premium’ basis.In these schemes it is customary for the amount of life assurance cover provided during any Scheme Year, and the amount of pension earned in respect of that year, to depend only on the salary of the member and not on his age. The employee normally contributes an amount, also fixed in relation to his salary, to purchase part of the pension by means of a deferred annuity providing a return of premiums without interest in the event of his death. The employer in each year pays the single premium required to purchase the balance of the pension accruing in respect of that year's service (usually by a deferred annuity without return of premiums in the event of the employee's death), and also to purchase the whole of the temporary life assurance granted during that year. The employer's premiums are recalculated each year on the basis of the ages attained in that year and thus for any individual employee the cost to the employer increases from year to year. Considering the scheme as a whole, this rise is partly or wholly compensated by deaths, withdrawals and retirements, and it may be quite reasonable to expect that the cost in the future will only rise by a small amount, or even decline.

Controlled Funding Methods for Group Pension Schemes

1960 ◽  
Vol 16 (02) ◽  
pp. 130-146
Author(s):  
C. S. S. Lyon
Keyword(s):  
Income Tax ◽  
Pension Scheme ◽  
Traditional Methods ◽  
Life Assurance ◽  
Pension Schemes ◽  
Group Life ◽  
Deferred Annuity

The costing technique known variously as Controlled Funding, Stabilized Costing and Aggregate Costing, is a comparatively recent development in the field of Life Office group pension schemes. Before explaining and discussing the methods used, it may be helpful to outline the principal types of Life Office group pension scheme, and to examine the more traditional methods of costing employed. It should be made clear at the outset that the term ‘group pension scheme’ relates to schemes insured by means of group deferred annuity contracts and approved under section 388(1) or section 379(3) of the Income Tax Act, 1952—endowment assurance schemes and group life assurance schemes are not within the scope of this paper.

Application of Computers to Group Schemes

1958 ◽  
Vol 26 ◽  
pp. 133-199
Author(s):  
G. D. Gwilt ◽  
G. C. Philip
Keyword(s):  
Simple Form ◽  
Electronic Computer ◽  
Small Scale ◽  
Group Schemes ◽  
Life Assurance ◽  
Pension Schemes ◽  
Group Life ◽  
Single Premium ◽  
Electronic Computers

SynopsisIn this Paper various methods of maintaining records and performing the annual costing and valuation of Group Life Assurance and Pension Schemes are discussed with particular reference to the “single premium” type of scheme.In Part I a simple form of single premium scheme is defined and the problem to be solved is set out. Possible solutions are discussed involving handwritten cards, punched cards and electronic computers.In Part II some of the added complications which arise in practice are introduced and a proposed system involving use of punched cards and a small-scale electronic computer is given in some detail.

The Extra Premium for a Premium Rebate Benefit in Recurrent Single Premium Group Life Assurance.

1961 ◽  
Vol 16 (05) ◽  
pp. 346-357
Author(s):  
P. M. Madders
Keyword(s):  
Simple Manner ◽  
Administrative Costs ◽  
Life Assurance ◽  
Group Life ◽  
Total Claim ◽  
Single Premium ◽  
The Cost

1. Consider the question: Given the group life assurance premium for death benefits, what extra should be charged for a premium rebate on the basis that the cost of the rebate must be covered by the extra? Assume no additional administrative costs are involved.2. Let the rebate be a proportion s of the excess of a fraction a of the total office premiumP′ over the total claimCin a year. The rebate is thens(αP′–C). Usually the benefit is more complicated, but as explained in §8, the extra premium for the more complex benefit is related in a simple manner to the extras for the benefit described. In order to avoid scale constants the average sum assured per life is taken as unity.

Estate Duty in Relation to Life Policies, Annuities and Pension and Life Assurance Schemes

1956 ◽  
Vol 25 ◽  
pp. 15-90
Author(s):  
G. C. Robertson
Keyword(s):  
Special Reference ◽  
Life Assurance ◽  
Pension Schemes ◽  
Group Life ◽  
Concise Guide

SynopsisThe aim of this Paper is to provide a concise guide to Estate Duty Law as it affects policies of assurance and other contracts entered into by Life Offices in the course of their everyday business.Part I, which is introductory, sets out the main enactments which render property liable to Duty, and covers such matters as aggregation and valuation of property.The liability of various types of Life Policies to Duty is dealt with in Part II, special reference being made to policies effected under the Married Women's Policies of Assurance (Scotland) Act, 1880, and the Married Women's Property Act, 1882, and to Partnership and Nomination Policies.Annuities of various types and their liability to Estate Duty are dealt with in Part III.The treatment of Group Life Assurance and Pension Schemes and other superannuation benefits in Part IV is, of necessity, general in its nature, because of the great variety of such arrangements. An attempt has been made to select the main types and to discuss their liability to Estate Duty.

Group Life Assurance.

1959 ◽  
Vol 15 (04) ◽  
pp. 299-319
Author(s):  
P. B. Armitage
Keyword(s):  
Practical Experience ◽  
Text Book ◽  
Life Assurance ◽  
Pension Schemes ◽  
Group Life ◽  
The Subject

The text book,The Practice of Life Assurance, by Coe and Ogborn, pp. 367–9, and the references there to other literature, give a brief summary of the subject of group life assurance; this paper attempts to bring out in more detail a little of the practice (of some U.K. offices) and some of the special problems that belong to the subject, for the benefit of students who have no practical experience of it. There is no dearth of literature on pension schemes, with which group life contracts are very often linked, so that reference to pension schemes in this paper, though necessary, will be brief.

The cost and value of UK defined benefit pension provision

2007 ◽  
Vol 7 (1) ◽  
pp. 3-36 ◽  
Author(s):  
PAUL SWEETING
Keyword(s):  
Interest Rates ◽  
Similar Pattern ◽  
Income Tax ◽  
Additional Cost ◽  
Defined Benefit ◽  
Pension Schemes ◽  
National Insurance ◽  
The Cost ◽  
Pension Benefits

SUMMARYThe purposes of this paper are to consider the effect on remuneration of defined benefit pension accrual and the factors that have resulted in changes to the cost and value of this accrual. In this paper, I look at the effect of the change in the cost to an employer of providing a defined benefit pension on the overall cost of remunerating an employee and compare that with the cost of remunerating an employee with no such pension benefits. I allow for the additional cost to the employer of national insurance contributions (‘NICs’). I also look at the change in value of an employee's remuneration, taking into account the value of defined benefit pension accrual and compare this with the change in remuneration for an employee with no such benefits. Here, I allow for employee national insurance contributions and income tax. These assessments look at the cost and value of pension accrual rather than any surplus or deficit relating to previously accrued pension entitlements. I find that costs of employment have risen significantly more for members of defined benefit pension schemes compared with other employees, and that this has largely been as a result of falling long-term interest rates and their effect on the cost of defined benefit pension accrual. The increase in the value of remuneration to employees has shown a similar pattern.

Group life and pension schemes, including valuation problems

1939 ◽  
Vol 5 (03) ◽  
pp. 122-136 ◽  
Author(s):  
M. C. Polman
Keyword(s):  
Special Class ◽  
Point Of View ◽  
Pension Scheme ◽  
The Real ◽  
Pension Schemes ◽  
Group Life ◽  
Group Insurance ◽  
Group Basis ◽  
The Subject

A Group Life and Pension Scheme is an employer's scheme instituted for the benefit of his employees. The real position of the life office, which is usually responsible for arranging the scheme, is that of underwriter. From the life office's point of view, with which this paper is solely concerned, the guaranteeing of these schemes on a group basis, as opposed to issuing an individual policy on the life of each employee, is a special class of business with certain definite characteristics which have not changed very much since N. C. Turner presented his paper to the Students' Society in 1930 on the subject of Group Insurance and Group Pension Schemes.

scholarly journals Intergenerational risk sharing within funded pension schemes

2010 ◽  
Vol 10 (1) ◽  
pp. 1-29 ◽  
Author(s):  
JIAJIA CUI ◽  
FRANK DE JONG ◽  
EDUARD PONDS
Keyword(s):  
Risk Sharing ◽  
Asset Returns ◽  
Olg Model ◽  
Welfare Gain ◽  
Pension Schemes ◽  
Intergenerational Risk ◽  
Entry Cohort ◽  
Intergenerational Risk Sharing ◽  
The Cost ◽  
Pension Benefits

AbstractIs intergenerational risk sharing desirable and feasible in funded pension schemes? Using a multi-period OLG model, we study risk sharing between generations for a variety of realistic collective funded pension schemes, where pension benefits and contributions may depend on the funding ratio and the asset returns. We find that well-structured intergenerational risk sharing via collective schemes can be welfare-enhancing vis-à-vis the optimal individual benchmark. Moreover, from an ex ante perspective the expected welfare gain of the current entry cohort is not at the cost of the older and future cohorts.

Group life and pension schemes

1943 ◽  
Vol 71 (3) ◽  
pp. 375-408
Author(s):  
A. G. Simons
Keyword(s):  
The Other ◽  
Group Schemes ◽  
Life Assurance ◽  
Pension Schemes ◽  
Other Hand ◽  
Group Life

There are many references to pensions in the pages of the Journal, most of them to the provision of pensions by means of private funds. I am proposing, however, to deal with the provision of pensions and life assurance by means of what are known as group schemes—a comparatively modern innovation. Pensions themselves are not new—in fact, references can be found in history to old retainers and the families of dead retainers living on the charity of the barons. More recently, however, pensions have come to be looked upon not as charity, but as something due as a moral right by virtue of long service. On the other hand, there is still a tendency to consider as charity the provision for dependents of deceased employees.

scholarly journals Measuring intra-generational redistribution in PAYG pension schemes

Public Choice ◽  
2021 ◽  
Author(s):  
Jonas Klos ◽  
Tim Krieger ◽  
Sven Stöwhase
Keyword(s):  
Pension System ◽  
Pension Scheme ◽  
Global Measure ◽  
Pension Reforms ◽  
Pension Schemes ◽  
Recent Reform ◽  
Index Value ◽  
Pension Benefits ◽  
The Ideal

AbstractVoters in ageing societies expect pension reforms to be both inter-generationally and intra-generationally fair. In this paper, we propose a global measure of intra-generational redistribution in pay-as-you-go pension schemes as a basis for voters’ evaluations of reforms. Our novel index only requires information on contributions by and pension benefits paid to retirees, enabling us to measure intra-generational redistribution isolated from possible inter-generational redistribution. We rely on the contribution records of approximately 100,000 Germans, who progressed into retirement in 2007–2015, to measure the level of intra-generational redistribution in the German statutory pension scheme (GRV). A recent reform of the childcare benefit provision, which became effective in 2014, confirms the predictions of our index. The reform introduced additional benefits for a substantial subgroup of German mothers, owing to which the index value for women, but not for men, jumps up. Our findings suggests that GRV fulfills the ideal of a Bismarckian pension system without intra-generational redistribution for men, while women benefit significantly from intra-generational redistribution.

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