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5 A trust based defined benefit pension scheme which is closed to future accrual is fully funded on a self-sufficiency basis. The trustees have decided to continue to operate the scheme in the long term (continuing to fund it on this basis) instead of taking steps to secure the benefits with an insurance company. (i) Explain what is meant by a self-sufficiency basis. [2] (ii) Outline why the trustees of the scheme may have taken this decision. [4] (iii) Set out the risks to the member of the trustees continuing to operate the scheme on a self-sufficiency basis. [4] [Total 10] 6 An actuary to a very large defined benefit pension scheme has undertaken a review of the mortality experience of the pensioner members over the previous year. A scheme manager has suggested that the mortality assumption for the forthcoming actuarial valuation should be set in accordance with the crude rates underlying this experience. (i) Outline the reasons why this may not be a suitable proposal. [4]