Abstract:
This article discusses the normal pension for Defined Benefit Pension Plan using the interest rate model of Cox Ingersoll Ross, where the parameter in the model is estimated using maximum likelihood methods. Pension benefits to be received by the pension insurance participants are determined based on the final salary of the participant, and all pension benefits are paid at the time of participants retires. To determine the normal cost to be paid by participants and actuarial liabilities of the Pension Fund is used the Projected Unit Credit.
