Actuarial Calculation Clause Samples
The Actuarial Calculation clause defines the method and standards by which financial values, such as premiums, reserves, or benefits, are determined using actuarial principles. Typically, this clause specifies that calculations must be performed by a qualified actuary in accordance with recognized actuarial standards and may outline the use of certain assumptions or methodologies, such as mortality tables or interest rates. Its core practical function is to ensure that all parties have a clear, objective, and consistent basis for determining key financial figures, thereby reducing disputes and promoting fairness in the administration of the agreement.
Actuarial Calculation. With respect to the Material Plans and any other defined benefit pension Plans for which past service Liabilities must be assumed by Verigy or one of its Affiliates, the past service Liabilities for Non-United States Transferred Employees to be so transferred shall be calculated as of the Separation Date (or later date of employment for any Non-United States Transferred Employees whose employment with Verigy or a Verigy Subsidiary begins after the Separation Date) on an Accumulated Benefit Obligation ("ABO") SFAS 87 basis, using Agilent's May 31, 2006 interim assumptions, as set forth in Exhibit C hereto. If there is a required method for calculating Liabilities upon transfer under Applicable Local Law, such Applicable Local Law requirements will be applied. Agilent's Actuary shall make its initial determination of the Transfer Amount on or before the Separation Date. Not later than 30 days following the Distribution Date Agilent's Actuary shall make its final determination of the Transfer Amount. Verigy's Actuary shall then have a period of 30 days to review such determination for completeness and submit its findings in writing. The determination by Agilent's Actuary shall be final and binding on the parties unless and to the extent the Verigy's Actuary finds missing, incomplete or inaccurate data, in which case a revised calculation shall be performed by Agilent's Actuary using the additional, complete and accurate data within 30 days of the date that Verigy's Actuary submits its findings. Such revised calculation shall be final and binding on the parties.
Actuarial Calculation. 3.1 Having been notified by the Vendor under paragraph 2.1, the Purchaser will procure that the Purchaser’s Actuary calculates the Completion Pension Scheme Liabilities and the Longstop Pension Scheme Liabilities and sends its calculation, in draft of such Pension Scheme Liabilities and its calculation of the Liability Movement Value (if any) and all calculation methodology and supporting documentation (the “Pension Pack”) to the Vendor within 60 Business Days of having been so notified (or such other date as may be agreed between the Vendor and the Purchaser).
3.2 The Vendor and the Vendor’s Actuary shall have 60 Business Days following receipt of the Pension Pack pursuant to paragraph 3.1 to review such materials. The Purchaser shall procure that the Purchaser’s Actuary, the Company and the Pension Scheme provide all information reasonably requested by the Vendor or the Vendor’s Actuary to enable the Vendor’s Actuary to check and confirm its agreement (or not) to the contents of the Pension Pack. If the Purchaser fails to provide such information within such period (and any extension agreed by the Vendor and the Purchaser) the matter shall be treated as a dispute and shall be resolved under paragraph 6 below.
3.3 Unless the Vendor shall within 60 Business Days of receipt of the Pension Pack (as provided in paragraph 3.1) serve a notice in writing on the Purchaser that it objects to the calculation of the draft Pension Scheme Liabilities and/or of the draft Liability Movement Value (identifying the reason for any objection and the amount(s) or item(s) and/or calculation which is/are in dispute) (such notification being, for the purposes of this paragraph 3.3, an “Objection Notice”) the Vendor shall be deemed to have irrevocably agreed to the draft Pension Scheme Liabilities and the Purchaser’s calculation of the Liability Movement Value.
3.4 If, within the period referred to in paragraph 3.3 the Vendor shall serve upon the Purchaser an Objection Notice then the Vendor and the Purchaser shall use their reasonable endeavours to reach agreement upon adjustments to the Pension Pack. Neither the Vendor nor the Purchaser shall be entitled to propose any adjustments to the Pension Scheme Liabilities and the Liability Movement Value as provided in paragraph 3.1, except: (i) in the case of the Vendor, an adjustment relating to any item referred to in its Objection Notice and (ii) in the case of either of them, an adjustment by way of counter-proposal to an adjustm...