P
y =x
iy y+ 1 2 x lx
ai y+ 1 2
P = Dx
64x ia Cx +t t=0
=P
ia Mx Dx
ia ia (i) Dene Cx [2 Marks] +t and Mx as used above. (ii) Calculate the present value of an annuity of Kshs.1, 000, 000 p.a payable on retirement at any age up to 65, due to; (a)ill-health retirement. [2 Marks] (b) normal retirement [3 Marks] Assume the member is currently aged 50
AASCR S a
Rx
Sa
P S 1 + e Rx ( ) aR A 1+i [2 Marks]
(b)Using the following assumptions i = 10%p.a, e = 9%p.a, A = 60, R = 65, aR = 12 Calculate SCR and AL under the Attained Age method for the following members individually, assuming salary is payable in arrear. (i)20 year old, no past service, salary Kshs.30, 000 [2 Marks] (ii)30 year old,10years past service, salary Kshs.20, 000 [3 Marks] (iii)60year old,30years past service, salary Kshs.40, 000 [3 Marks]
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