@inproceedings{25de9198cfc247b895ea5c8d0ca784b9,
title = "Comparison of entry age normal and projected unit credit method for funding of defined benefit pension plan",
abstract = "In this modern age, the quality of life of a person is always improving. This leads to longer lifespans, hence resulting in a longer pension period for that individual. Pension programs are therefore needed more than ever so that a person can receive a benefit after they retire and maintain the same quality of life they had before they retired. The topic of this paper is comparing the entry age normal and projected unit credit method for funding of a defined benefit pension plan. The entry age normal method uses the concept of projecting the benefit that will be earned at the end of an employee's career. The projected unit credit method uses the concept of benefits accrued to the date of normal cost determination. From the data simulation it can be concluded that the projected unit credit method results in a smaller normal cost compared to the entry age normal method and the projected unit credit method results in a greater actuarial liability compared to the entry age normal method.",
keywords = "actuarial liability, ancillary benefit, Normal cost, pension benefit",
author = "Angkasa, {A. P.} and D. Lestari and S. Devila",
note = "Funding Information: This work was financially supported by Universitas Indonesia. Publisher Copyright: {\textcopyright} 2021 Author(s).; 6th International Symposium on Current Progress in Mathematics and Sciences 2020, ISCPMS 2020 ; Conference date: 27-10-2020 Through 28-10-2020",
year = "2021",
month = jul,
day = "23",
doi = "10.1063/5.0059248",
language = "English",
series = "AIP Conference Proceedings",
publisher = "American Institute of Physics Inc.",
editor = "Ivandini, {Tribidasari A.} and Churchill, {David G.} and Youngil Lee and Alias, {Yatimah Binti} and Chris Margules",
booktitle = "Proceedings of the 6th International Symposium on Current Progress in Mathematics and Sciences 2020, ISCPMS 2020",
}
