Actuarial Valuation on the Public Service Pension Plan

The questions below are based on the Actuarial Valuation on the Public Service Pension Plan as at December 31, 2011:
https://web.archive.org/web/20150427224210/https://www.pspp.ca/about/publications/valuation_reports/PSPP_Actuarial_Valuation_Report_2011.pdf
Read through the document. Prepare a short answer (from one line to one paragraph maximum should be sufficient to answer each question) for each of the following questions. Answer in your own words, where possible. Support each answer with the relevant page and section numbers from the valuation report.
1.The Executive Summary presents the results of two different valuations.
a.As of December 31, 2011 for each valuation method, is the plan in deficit or surplus? How do you know? (2 marks)
b.What is the value of the difference between the results of the 2011 going concern and solvency valuations? (2 marks)
2.Explain how going-concern and solvency valuations can produce different results for the same plan. Include references to the report and the textbook with page numbers to support your answer. (5 marks)
3.The report discusses contribution requirements in Section 4.
a.From the information provided in the valuation, what does “current service rate” mean? (3 marks)
b.What is the University’s current service rate? What factors contributed to the change from 2010 to 2011? (3 marks)
4.Name one example of an economic assumption used in the valuation report.
a.Identify the value of this assumption in both the going concern and solvency valuations (provided in Appendix C and D, respectively). (5 marks)
b.Briefly summarize the justifications for this assumption in both the going concern and solvency valuations. (5 marks)
c.Discuss why the value of this assumption is either the same or different for each valuation. (5 marks)