Kindly answer all the following assignments

2. You must not start writing your answers in the booklet until instructed to do so by the supervisor. 3. You have 15 minutes of planning and reading time before the start of this examination. You may make separate notes or write on the exam paper but not in your answer booklet. Calculators are not to be used during the reading time. You will then have three hours to complete the paper. 4. Mark allocations are shown in brackets. X Directly edit text and image in PDF Edit Hand in BOTH your answer booklet, with any additional sheets firmly attached, and this question paper. In addition to this paper you should have available the 2002 edition of the Formulae and Tables and your own electronic calculator from the approved list. ST4 S2017 Institute and Faculty of Actuaries A company currently provides a defined benefit pension scheme for its employees. The benefits provided by the scheme are a pension equal to 1/60th of final salary for each year of service, plus a death benefit lump sum of two times salary. The company is proposing to replace the current scheme with a flexible benefit scheme. (i) Explain what is meant by a flexible benefit scheme. [1] (ii) List the benefits that could be included in the proposed scheme. [5] The company decides to set up a flexible benefit scheme, offering a range of benefits to employees. The scheme has been designed such that the overall benefit provision will have the same expected cost to the employer as the current scheme. (iii) Explain why the employer might want to provide a core level of certain benefits under the flexible benefit scheme. [2] (iv) Set out the advantages and disadvantages of this new scheme to: (a) the employer; and (b) the employees. [8] [Total 16] ST4 S2017-2 10%A company currently provides a defined benefit pension scheme for its employees. The benefits provided by the scheme are a pension equal to 1/60th of final salary for each year of service, plus a death benefit lump sum of two times salary. The company is proposing to replace the current scheme with a flexible benefit scheme. (i) Explain what is meant by a flexible benefit scheme. [1] (ii) List the benefits that could be included in the proposed scheme. [5] The company decides to set up a flexible benefit scheme, offering a range of benefits to employees. The scheme has been designed such that the overall benefit provision will have the same expected cost to the employer as the current scheme. (iii) Explain why the employer might want to provide a core level of certain benefits under the flexible benefit scheme. [2] (iv) Set out the advantages and disadvantages of this new scheme to: (a) the employer; and (b) the employees. [8] [Total 16]