1
- 3
arranged at wholesale
rates,
the rate of return on
investments should exceed the cost of servicing the loans.
Upon retirement, the officers would pay the promised lump sum
from their commuted pension to the "corporation" which in
return would pay them such accumulated lump sum including any
monies earned from investment, as may exist.
SUMMARY
5.
The
areas in
consultancy report covers largely the following
relation
to
the establishment of an hypothecated
pension fund scheme (the Scheme) :
Actuarial
(a) Actuarial;
(b) Investment;
(c)
Monetary;
(d)
Legal; and
N
(e)
Borrowing.
6.
major
From an actuarial point of view there would be no
difficulties in projecting future values of officers'
sum entitlements for assessing the scale of the funds to
be established. The factors to be taken into account include
lump
promotion prospects,
length of service, probability
of
The Consultant recommended
premature death and inflation.
......