PENSION SCHEMES AND EARLY RETIREMENT

Abstract

The ultimate funding objective in relation to a pension scheme is the accumulation of sufficient assets to pay the benefits promised under the provisions of the scheme as they arise. There are many funding methods available for use in meeting the objective but, until recently, the one most used by U.K. consultants has been said to be the Aggregate Method (2). This section is intended to provide some insight into the practical effects of using this method, particularly in relation to unanticipated withdrawals from service.