In this example we used subject 404 Followship Pension
Study Plan: Faculty of Actuaries - Exam Transcript
Level of understanding: Postgraduate/Ph.D.
Total Study Sessions: 7
Session 1: Saturday, August 5, 2023 (12:00 AM to 01:00 AM) - Introduction and Instructions
- Read and understand the introduction to the transcript, including the instructions and format of the exam.
- Familiarize yourself with the instructions given to candidates and the time allowed for each section of the exam.
Session 2: Tuesday, August 8, 2023 (08:00 AM to 09:00 AM) - Section 1: Defined Contribution Pension Scheme
- Study and outline the possible reasons why a company might consider switching future pension provision to a defined contribution basis.
- Understand the advantages and disadvantages of defined contribution benefits compared to defined benefit benefits from the member's point of view.
Session 3: Thursday, August 10, 2023 (08:00 AM to 10:00 AM) - Section 2: Investment Strategy for Defined Benefit Scheme
- Analyze the advantages and disadvantages of different investment options for trustees, including segregated funds, insurance company managed fund contracts, and with profits contracts.
- Outline the factors trustees should consider when deciding whether to switch investments into an alternative medium.
Session 4: Tuesday, August 15, 2023 (08:00 AM to 09:00 AM) - Section 3: Valuation of Unreduced Transfer Values
- Identify the factors trustees should consider when deciding whether to continue offering unreduced transfer values.
- Calculate two possible percentage reductions in transfer values, making appropriate assumptions.
Session 5: Thursday, August 17, 2023 (08:00 AM to 10:00 AM) - Section 4: Investment Strategy for Defined Benefit Scheme
- Understand the general investment objectives for trustees of defined benefit schemes.
- Discuss and evaluate the statements of Trustee A, Trustee B, and Trustee C in relation to these objectives.
- Suggest a suitable investment strategy for the scheme with reasons.
Session 6: Tuesday, August 22, 2023 (08:00 AM to 09:00 AM) - Section 5: Individual Pensions Package
- Outline the issues an individual needs to consider when negotiating a pensions package with a new employer.
- Determine the necessary information needed to advise the individual, based on their transfer value and the new employer's defined benefit scheme.
Session 7: Thursday, August 24, 2023 (08:00 AM to 10:00 AM) - Section 6: Actuarial Assumptions and Balance Sheet
- Discuss the scope of setting actuarial assumptions to minimize the disclosed deficit on a pension scheme, taking into account any constraints.
- Analyze the main items of experience contributing to surplus or deficit.
- Estimate the new balance sheet based on proposed changes to the discount rate and salary inflation assumption.
Revision and Exam Preparation:
- Dedicate the remaining study sessions to revisiting and reviewing the key concepts and main ideas in each section.
- Create summaries or flashcards for important points, equations, and assumptions.
- Practice solving problems and answering questions related to each section of the exam.
Remember to allocate additional time for breaks, further readings, and personal review as needed. Stay consistent with your study schedule and adjust it accordingly if required.
Note: It's advisable to consult the original resource or textbook for more details and examples related to each section of the exam transcript.
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