Select Committee on Members' Fund - Report by the Government Actuary on the Valuation of the Fund as at 30 September 2003 Report


5. FUNDING OBJECTIVE AND VALUATION METHOD

  5.1  The funding objective is that there should be sufficient assets at the valuation date to meet the future liabilities in respect of awards made up to that date, including future awards to the widows and widowers of former Members currently receiving payments. This objective is predicated on the assumption that the Fund continues in its present form.

  5.2  The valuation method is to compare the capitalised value of future liabilities with the value of the assets at the valuation date. A number of assumptions, as to future interest rates, mortality rates and rates of increase in benefits, have to be made for this calculation, as described in section 6.


 
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Prepared 28 October 2004