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What is the regular contributions funding approach?

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asked Nov 9, 2017 in BUS 4027W - Actuarial Risk Management by Rowan (3,200 points)

Regular contributions funded approach is when contributions made by the employer are added to a fund that accumulates to eventually pay for the member's pension. Is this correct?

1 Answer

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answered Nov 9, 2017 by jolegutko (520 points)

YES.

The contributions could be by employer and member.

The pension could be bought from an insurer or paid from the fund.

I'm just trying to add words to make it look like there is more here than just "YES".

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