Windjammer

ROGER1982 Wrote:
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> Liability noise:
>
> - plan, demographic experience differently from
> the actuary's model given that the underlying
> probabilities are certain
> - Model uncertainty: the underlying probability is
> not certain
>
> The active employees have largest liability
> noise(hardest to hedge):
> - Their mortality assumption is less accurate
> - Their benefit payments are embedded with
> assumption of withdrawl, disability and retirement
> and are embedded with a large amount of
> uncertainty, much more so than those of retirees
> or deferreds
>
> For retirees, liability noise include:
> - mortality asumption about the length of people's
> lives and the duration they will receive benefits
>
> For deferred, liability noise include:
> - longevity risk
> - when the participant will retire and start
> receiving benefits

Could you post the source of it? CFA Book No, SS, Reading, Page?
Thx