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A method of developing a reserve funding plan where the total contribution is based on the sum of contributions for individual components.
Sometimes also called Straight-line Calculation, it does not take into consideration current reserve funding balances, interest rates or inflation factors. We use the Component Method to calculate our starting Annual Reserve Contribution figure as well as our minimum Threshold level.
The Reserve Study consists of two parts:
There are two Funding Methods:
There are four Funding Plans:
Reserve Study Formats:
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