ACSC 533 Study Guide - Final Guide: Casualty Insurance, Actuary, Catastrophe Bond

• School: University of Calgary
• Department: Actuarial Science
• Course: ACSC 533
• Professor: David Scollnik

Document Summary

Risks: risk that the individual may not have sufficient income when employment ends. Includes outliving retirement income, losing retirement income due to a career change, insufficient funding retirement benefits. Financial security system: these include public and private pension plans. Public plans involve contributions based on salary while the individual is working, and a salary related income after retirement. Private plans offered by employers include db, dc, and combinations (eg target benefit) The actuary"s contribution: a retirement actuary has expertise in the design, funding and regulatory aspects of public and private retirement plans they generally consult with private pension plans sponsors (employers) on behalf of plan participation (employees). A defined benefit (db) plan is a plan in which an employer/sponsor promises a specified pension benefit on retirement that is predetermined by a set of formula. Defined contribution (dc): contributions are made to an account. They are invested and the returns on the investment are credited to the individuals account.