Determining the Pension Benefit Obligation of a Defined Benefit Plan: Applying a Multivariate ARIMA Stochastic Model

<p>In this study we examine the robustness of fit for a multivariate and an autoregressive integrated moving average model to data sample time series type. The is recurrent actuarial set 10-year horizon. We utilize methodology contrast with stochastic models make projections beyond Our key results suggest that both types are useful making predictions liability levels given by PBO Projected Benefit Obligations on off horizon series. As have seen in prior research, use control auditing purposes widely recommended. Fast reliable statistical estimates desirable all cases, whether audit or verify validate miscellaneous results.</p>