Pensions and Lifetime Savings Association and Periodic discount rate: Difference between pages

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UK body which represents the interests of employer sponsored occupational pension schemes with government and with the media.
A rate of return - or cost of borrowing - expressed as:


Formerly known as the National Association of Pension Funds (NAPF).
*The excess of the amount at the end over the amount at the start
*Divided by the amount at the end
 
 
==Example 1==
GBP 1 million is borrowed.
 
GBP 1.03 million is repayable at the end of the period.
 
 
The periodic discount rate (d) is:
 
(End amount - start amount) / End amount
 
= (1.03 - 1) - 1.03
 
= 0.029126
 
= 2.9126%




==See also==
==See also==
* [[NAIC]]
 
* [[Occupational pension scheme]]
*[[Annual effective rate]]
* [[Pensions Management Institute]]
*[[Discount rate]]
* [[ABI]]
*[[Periodic yield]]
*[[Yield]]

Revision as of 10:44, 25 October 2015

A rate of return - or cost of borrowing - expressed as:

  • The excess of the amount at the end over the amount at the start
  • Divided by the amount at the end


Example 1

GBP 1 million is borrowed.

GBP 1.03 million is repayable at the end of the period.


The periodic discount rate (d) is:

(End amount - start amount) / End amount

= (1.03 - 1) - 1.03

= 0.029126

= 2.9126%


See also