Actuarial valuation of pension plans by stochastic interest rates approach

Interest rates which have been deterministic are used in calculations of actuarial present values, reserve, mortality, premium concerning pension plans. Interest rates had been preferred a constant value while life contingencies were determined to be random during pension time of insured. These cases landed risk measures all establishments that constituted the pension system.In this study, interest rates which are the most uncertain risks at issue are considered stochastic to decrease the effect of inflation in the actuarial valuations. Also, applications were made based on the procedures and principles in the draft resolution of ministerial cabinet relevant to Banks, Insurance Companies, Reinsurance Undertakings, Chambers of Commerce, Chambers of Industry, Bourses and the special retirement fund where consist all of these establishment personals. As a result of the applications, some results were obtained with reference to how will happen calculations of the pension system both pluses and minuses after cession term.