Regulatory Alerts2024-04-04
Added · Updated
Report on Assumptions and Methodologies in Actuarial Valuations for Defined Benefit Plans (2020–2022)
The Financial Services Commission of Jamaica surveyed 64 actuarial valuation reports for defined benefit pension plans from 2020 to 2022 to document prevailing funding methodologies and demographic and economic assumptions. The analysis reveals that the Attained Age method was the most widely used funding approach, while nominal discount rates ranged from 6.0% to 10.0% and exhibited an upward trend alongside salary increase assumptions averaging 8.0%. Although 90.6% of the surveyed plans reported funding surpluses, the report highlights significant variability in mortality tables, pension increase provisions, and administrative expense margins, with no explicit adverse deviation margins disclosed across the examined valuations.