Prospective benefits funding method
From ACT Wiki
A funding method in which the actuarial valuation at the valuation date is the present value of:
- The actual benefits for pensioners and deferred pensioners and their dependants, and
- The benefits that active members will receive in respect of both past and future Pensionable Service
- Allowing for future increases to salaries and benefits, and
- Net of the present value of future contributions payable in respect of active members at the standard contribution rate.