# Pensions using Traditional unit method - DHW Exercise 10.13b

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Hey,

To calculate actuarial liability at 1 Jan 2009, I used the salaries as at 1 Jan 2009 as the final salary. However, I get an answer different to the solutions and they used salaries as at 1 Jan 2008.

What is the final salary I should use?

In this question the salary increases are assumed to occur on the $$31^{st}$$ of December. So even though you are conducting the valuation on 1 Jan 2009 the employees have not yet accrued service based on the increases they have just received, so it makes sense to use the 2008 salaries.