pension valuations

Pension valuations assess the financial health of a pension plan by estimating its future obligations to retirees and comparing them to its current assets. This process involves calculating the present value of future pension payments based on factors like employee life expectancy and salary growth. Valuations help ensure that the plan has enough funds to meet its commitments. They are crucial for employers to manage risks and for regulators to ensure pension plans remain solvent and can provide the promised benefits to participants over the long term.