A paper entitled a “Second International Comparative Study of Mortality Tables for Pension Fund Retirees” has been published by T.Z.Sithole (Kingston University), S.Haberman and R.J.Verrall (both Cass Business School, City University London).
The paper compares the mortality assumptions used in the valuation of defined benefit pension liabilities in the EU and a number of other countries. The results are considered in relation to the underlying population mortality rates, in order to isolate the strength of the mortality assumptions being applied. It is found that there is evidence of a lack of consistency between countries, and that this has not changed since the previous study.
This paper has important implications for actuaries and investors, since defined benefit pension liabilities can form a significant item on the balance sheet of many companies.
The paper is available in the Library on this page.