Welcome to the hotseat. We've prepared a guide if you'd like to read more about how it works.

What is the regular contributions funding approach?

+1 vote
asked Nov 9, 2017 in BUS 4027W - Actuarial Risk Management by Rowan (4,010 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

+1 vote
answered Nov 9, 2017 by jolegutko (870 points)


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".