Actuarial assumptions

Necessary when calculating the actuarial value w of a pension fund’s assets versus liabilities.  The assumptions are based on a mix of statistical studies and experienced judgment. (actuarial aannames)

Actuarial rate

The value to calculate the amount of money a pension fund needs now, in order to fully pay the future pensions of participants. In general, the actuarial rate is based on the expected risk-free yield. (rekenrente)

Actuary

A professional who deals with the measurement and management of risk and uncertainty. (actuaris)

Administrative capacity review

An instrument used by an organization develop insight into the quality of its own functioning. The review indicates how tasks are performed and whether objectives were achieved. (bestuurskrachtonderzoek)

ALM Study

An Asset and Liability Management Study is conducted to provide insight into the relationship between expected proceeds from investments and the associated risks.  The study can be used to recommend changes that can lead to improvement of the coverage ratio.

APS

General Pension Fund of St. Maarten is the fund in which all government or public sector workers participate.(Algemeen Pensioenfonds Sint Maarten). For more about APS, visit www.apsxm.org  

Coverage ratio

The relationship (expressed in percentage) between the pension fund’s capital and the pensions that must be paid in future to participants. (de dekkingsgraad)

Defined Benefit

Is a type of pension plan in which an employer promises a specified pension payment on retirement that is predetermined by a formula based on the employee’s earnings history, years of service and age. (toegezegd pensioenregeling)

Defined Contribution

Is a pension plan in which the employer, employee or both make contributions on a regular basis. Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts plus any investment earnings on the money in the account. A defined contribution plan does not promise a specific amount…

Master Investment Policy Statement (MIPS)

The main document drafted between the portfolio manager and the APS that outlines general rules for the manager. It provides the general investment goals and objectives of the APS and describes the strategies that the manager should employ to meet these objectives.

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