In the fourth installment of Triscend's "It's Time to Modernize Executive Retirement Benefits" series, guest author, Jason Konopik, a Fellow in the Society of Actuaries, from AMZ Financial, discusses the various issues associated with “Life Expectancy” used in deferred compensation plans.
The "law of large numbers" is one of the most well-known statistical concepts. It states the larger the population, the more predictable the results. One of the best examples of the law of large numbers is gambling, according to the article.
The use of a deferred compensation plan for an executive or highly paid individual can be a very useful tool in providing reirement benefits.
In the end, a deferred compensation plan can be a very valuable tool to provide retirement benefits to an executive or highly compensated individual.
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