Credit Guarantee Scheme and Experience: Difference between pages

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(CGS).  
''Pensions.''


A UK Treasury scheme under which banks and other financial institutions could obtain credit insurance effectively backed by the government in return for a fee (designed to be calculated on a full commercial basis).
Liability projections require assumptions for a number of variables, including mortality, early leavers, inflation and other factors.
Actual experience of these variables will cause the liabilities at any point in the future to differ from the projections, which will in turn influence contribution rates and the like.


The CGS was launched with the aim of making it easier for financial institutions to borrow money. 
For example, increasing longevity will lead to increased liabilities (and hence to increased contribution rates).
The Scheme was closed to new issuance in 2010.


(Not to be confused with the Export Credits Guarantee Department, which relates to ''exports'' from the UK.)


==Related words==
== See also ==
 
* [[Experience gains and losses]]
* [[Asset purchase facility]]
* [[Stability]]
* [[Export Credits Guarantee Department]]

Revision as of 14:04, 6 May 2016

Pensions.

Liability projections require assumptions for a number of variables, including mortality, early leavers, inflation and other factors.

Actual experience of these variables will cause the liabilities at any point in the future to differ from the projections, which will in turn influence contribution rates and the like.

For example, increasing longevity will lead to increased liabilities (and hence to increased contribution rates).


See also

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