Abstract

Journal of Actuarial Practice

Volume 3, Number 1, 1995


Actuarial Conservatism: Not in Public Sector Defined Benefit Pension Plans

Brian A. Jones

Abstract

Most actuaries tend to be conservative, and most, including this writer, probably would be happy to be so categorized. But actuarial conservatism may not be the best rule in defined benefit public sector pension plans. This paper argues that it is not appropriate for actuaries to employ conservatism assumptions in such public sector plans.

Key words and phrases: assumptions, risk, funding, generational equity

Brian A. Jones
10 Clinton Street,
Brooklyn NY 11201,
USA



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