text: After1January 1983changes in FundRegulations andprocedures, butbeforedemographic changes afterdemographic changes 31December 1984 Before1January 1984andlS85 changes inFundRegulations andprocedures After1January 1984and1985changes inFundRegulations andproceduresTotalreauired 27.82 28.32 29.41 25.79 26.80 25.94 24.76Imbalance 6.82!,/ 7.32 ~/ 8.41j!/ 4.79j!/ 5.80j!/ 4.94j!/ 3.01.!?IC I Ch pa Fa Ne re Ef fo Ot In 1 Ec 1 j!/Excessovercontribution rateof21percent. 16.Ascanbeseenfromtheforegoing table,theimbalance asrevealed bythevalua~ion asat31December 1984(3.01per~ent)is1.78percentlowerthantheilAbalance of4.79percentasat31December 1982reported totheGeneral Assemblyatit~thirty-eighth session.11Thisnetdecrease hasbeenaChieved becausefavourable developments between thetwovaluations outweighed adverse factors. The latterconsisted ofdemographic changes, whichaddedatotalof1.01percenttotheimbalance, andoftheinterest accumulating ontheprevious imbalance (anaddition of0.56percent)-givingatotalof1.57percent. Ontheotherhand,netexperience gainsandcertain changes inassumptions havereduced theimbalancebyatotalof1.42 p~rcent. Inotherwords.theimbalance wouldhaveincreased by0.15percentwereitnotfortheincrease intherateofcontribution effective1January 1984andtheeconomy measures introduced effective 1January 1985.Theforegoing factors aresetoutingreater detailinthefollowing table,whichshowshowtheimbalance hasdecreased from4.79to3.01percentofpensionableremuneration:~/Excessovercontribution rateof21.75percent. 17 at ra Bo de 21 18 im de to ca sh -6-'oae.'...._~_i<i.;;!i 'Biii "' "' • Increase (decrease) intheim~l~ (Percentage) Changes indemographic assumptions Increased longevity Greater incidence ofearlyretirement and ofretirement atage600.39 0.52 Otherdemographic changes 0.10 Interest accumulating on1982imbalance 0.56 Changeintheassumption astopercentage of participants whoelectlump-sum commutation (0.36) Favourable investment experience (0.13) Neteffectofcurrency changes onpensionable remuneration and ~enefits (0.19) Effectofnewscaleofpensionable remuneration fortheProfessional andhighercategories (0.16) Otherexperience gains (0.58) Increase intherateofcontribution effective 1January 1984 (0.75) -7-17.TheBoardrecalled therecommendation thatithadmadetotheGeneral Assembly atitsthirty-eighth session andreaffirmed atitsthirty-ninth session thatthe rateofcontribution beraisedgradually to24percentby1January1990.!! The Boardunanimously recommends thattheGeneral Assembly, atitsfortieth session, decidethattherateofcontribution beincreased fromthecurrent levelof 21.75percentby0.75percentto22.5percenteffective 1January 1986. 18.Suchanincrease intherateofcontribution wouldreducetheremaining imbalance to2.26percentoftotalpensionable remuneration. Barring unfavourable developments, andassuming thattherateofcontribution isincreased intwostages to24percentby1January 1990,theremaining imbalance shouldceasetobea causeforconcern. Inparticular, theinterest accumulating ontheimbalance shouldbeconsiderably lessthanhitherto (theinterest accumulating onan imbalance of2.26percentamounts toapproximately 0.2percentayear). Atthe sametime,theimprovement intheactuarial balance oftheFund,asshownbythe latestvaluation, shouldnotinducefeelings ofcomplacency, andtheBoardproposes tomonitor developments andtomakeappropriate recommendations totheGeneral Assembly shouldtheneedarise.(!:.!!) (1.78)Economy measures introduced effective 1January 198519.Ascanbeseenfromthetableinparagraph 16above~theimbalance grewbetween the1982and1984va1uations by0.52percentbecause oftherecognition in theactuarial assumptions ofthegreater incidence ofearlyretirement andofretirement atorshortly afterage60thanhadbeenassumed .onthebasisofpriorexperience. Thistrend,ifitcontinues unchecked, willhavefurther adverseeffectontheactuarial balance oftheFund,andtheBoardtruststhatthisfactorwillbegivendueweightintheformulation orreformulation ofthepersonnelpo1icies,of themember organization~. Inthisconnection theBoardrecalls therecommendation ithadmadein1982andreaffirmed in1983and1984thatthestatutory ageofseparation beraisedto62.11 1.93 1.81PercentageReduced rateofaccumulation forentrants asat1January 1983
analysis: This text appears to be discussing the financial management of a pension fund, specifically the changes in regulations and procedures, demographic changes, and the impact on the fund's balance. It also touches on the topic of employee policies and the need to reformulate them. Given the focus on financial management and employee-related issues, I would hypothesize that the most fitting category is Employment.