- Actuarial Balance
The difference between future Social Security obligations and the income rate of the Social Security Trust Fund as of present. The Social Security program would be said to be in actuarial balance if the summarized income rate is inline with the summarized cost rate of Social Security for any given valuation period.
Commonly referred to as the "solvency" of the Social Security System.
Actuarial balance is calculated for 66 different valuation periods, beginning with the upcoming 10 year period and growing with each successive year up to the the full 75 year projection. If at any point over the 75 year projection the anticipated costs of Social Security exceed the future value of the trust fund's income, that period would be deemed to be out of actuarial balance. The difference would theoretically be the difference in the tax rate of Social Security provided from FICA.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Actuarial Deficit — The difference between future Social Security obligations and the income rate of the Social Security Trust Fund as of present. The Social Security program is said to be in actuarial deficit if the summarized income rate is less than the… … Investment dictionary
Actuarial credibility — describes an approach used by actuaries to improve statistical estimates. Although the approach can be formulated in either a frequentist or Bayesian statistical setting, the latter is often preferred because of the ease of recognizing more that… … Wikipedia
Actuarial notation — 1. net single premium of insurance (benefit 1 unit) 2. paid at the moment of death 3. for x year old person, for n years 4. life insurance 5. deferred (m year) 6. with double force of interestActuarial notation is a shorthand method to allow… … Wikipedia
Actuarial Gain Or Loss — Gain or loss arising from the difference between estimates and actual experience in a company’s pension plan. Actuarial gains and losses are used when accounting for pension plans because of the need to make assumptions about the future… … Investment dictionary
Cash balance plan — A cash balance plan is a defined benefit retirement plan that maintains hypothetical individual employee accounts like a defined contribution plan. The hypotheticality of the individual accounts was crucial in the early adoption of such plans… … Wikipedia
Medicare (United States) — President Johnson signing the Medicare amendment. Former President Harry S. Truman (seated) and his wife, Bess, are on the far right … Wikipedia
Actuary — Damage from Hurricane Katrina. Actuaries need to estimate long term averages of such damage in order to accurately price property insurance and set appropriate reserves. Occupation Names Actuary … Wikipedia
Retirement plans in the United States — A retirement plan is an arrangement to provide people with an income, possibly a pension, during retirement, when they are no longer earning a steady income from employment, or an asset from which a person may draw an income from as needed. There … Wikipedia
Pension — This article is about the retirement income arrangement. For the type of lodging, see Pension (lodging). For the mortgage repayment scheme, see Mortgage loan. Financial market participants … Wikipedia
Social Security (United States) — This article is about the retirement/disability program. For the general concept of providing welfare, see Social security. For other uses, see Social Security (disambiguation) … Wikipedia