Question: v1 Consider a pension scheme that will provide a pension of 1/60th of pensionable salary for each year of service (fractions of a year

v1 Consider a pension scheme that will provide a pension of 1/60th

v1 Consider a pension scheme that will provide a pension of 1/60th of pensionable salary for each year of service (fractions of a year counting proportionally) on retirement for any reason. A member, aged 35, has 5 years of past service. His annual salary preceding the valuation date is 100,000. Pensionable salary is the average annual salary earned in the final 36 months of employment. Using the assumptions underlying the Pension Scheme in the Formu- lae and Tables for Actuarial Examinations and assuming that the interest rate is 4% per annum, calculate the expected present value of the pension benefits arising from the future service. State the additional assumptions. you make.

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