German Benefit Promises

(See also Minimum Liability under pension mode Plan Definitions.)  

The Minimum Liability topic allows you to specify an account balance that serves as the minimum possible recognized liability for an active member. If a liability measure for a record is less than the minimum liability, then an additional minimum liability will be generated to make up the difference, so that the total liability will equal the account balance. This is typically used when an individual account balance is maintained as an asset of the plan, and the actuary wants to avoid reporting a surplus for anyone whose actuarially generated liability is less than the asset.

In addition, the expected and experience benefit payments (but not the projected benefit payments) will be compared to the values of the Benefit Component on a PVB basis prior to applying any probabilities or discounting.  

 Check the box Apply survival discount in minimum liability normal cost calculation to adjust the minimum normal cost for survival.  

The minimum liability will be applied only to Accounting liabilities; Tax/Funding liabilities will not be affected.