Actuarial Risk Pool

An Actuarial Risk Pool is an aggregation of money constructed and operated using the Science of Statistics, the Mathematics of Probabilities, and the Law of Large Number for averaging the actual costs of providing a specified benefit to a defined population of pool participants.

A Defined Benefit Pension Plan is an Actuarial Risk Pool for averaging the costs of providing income security in retirement to an evergreen population of current retirees, current workers who are also future retirees and future workers who will become future retirees.