Actuarial Valuation results as well as Deterministic and Stochastic Projections can serve as effective tools in order to choose optimal Contribution Policies for defined benefit pension plans, including the following key items:
Deterministic Optimizations
Optimal Contribution Policy is selected by carrying out Deterministic Projections of asset and liabilities, based on certain input values of assumptions and Investment Policies.
Stochastic Optimizations
Optimal Contribution Policy is selected by carrying out Stochastic Projections of asset and liabilities for various Contribution Policies and Investment Policies.
Cross-Optimized Contribution Policy
Contribution Policy optimization and Investment Policy optimization can be carried out as part of a single optimization process. In this case Contribution Policy and Investment Policy will be cross-optimized.