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II.
Principles of the Valuation.
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1. With respect to the assumption of the
rate of compound interest at which the values of
the liabilities and contributions should be dis-
counted, I need add nothing to the statement that
6 per cent. has been adopted.
2.
But the important question of the rate of
mortality demands a brief discussion.
Since a primary object of a Valuation is
to secure, as far as practicable, a reasonable uni-
formity and stability of future results consistent
with past experience, so that continuity may not
be interrupted by grave changes.
this element of
mortality forms the most serious consideration.
The
differences between the experience of Pension Funds
as indicative of the probable future are very
marked: differences occasioned by the constitution
of the Funds themselves; by the Fules of Membership:
by the composition of membership; by the social
condition of the members; by the climate and modes
of life in the various localities; and by the vary-
ing proportions between the Nationalities to which the
members belong; so that, practically, every Fund
presents a distinct problem to which no general
measure (without modification) can apply. Where a
Fund possesses a long duration and wide area and
its membership has become practically consolidated,
so that a uniform experience may be regarded as
fairly assured, the appropriate measure of its
expected mortality is, obviously, the tabulated (and
graduated) experience of the past. But few Funds
present