A comparative study of the effects of the unit credit and the frozen-initial liability cost methods in funding pensions
Date
9-1992
Degree
Bachelor of Science in Agriculture
College
College of Arts and Sciences (CAS)
Adviser/Committee Chair
Rhodora O. dela Peña
Abstract
This study aimed to present a comparison of the effects of the Unit Credit and Frozen-Initial Liability cost methods which was based from the point of view of an actuary. Both were applied to 3 different companies. The comparison was based into 2 major factors : the generated outputs (normal cost, accrued liability and unfunded accrued liability) and the algorithms of the methods (operational count, computational speed and memory capacity). Moreover, the profile of the company was also a determining factor as to which method is more appropriate.
Both methods were coded into a computer program using Turbo Pascal Version 5.0 language.
It was concluded that choosing the appropriate method in funding pensions for the 3 sample companies depended upon the profile of the company. In terms of their algorithms, the Frozen Initial Liability Cost Method is the better method.
Language
English
Location
UPLB Main Library Special Collections Section (USCS)
Call Number
Thesis
Recommended Citation
De Armas, Roderico A., "A comparative study of the effects of the unit credit and the frozen-initial liability cost methods in funding pensions" (1992). Undergraduate Theses. 9812.
https://www.ukdr.uplb.edu.ph/etd-undergrad/9812
Document Type
Thesis