Final answer:
The key factor considered in determining the actuarial normal contribution rate is the expected future salary growth of employees. The rate ensures that contributions made over an employee's career, combined with investment returns, will be sufficient to fund their retirement benefits. Actuaries use actuarial assumptions and mathematical models to estimate future salary growth and calculate the rate.
Step-by-step explanation:
The key factor considered in determining the actuarial normal contribution rate is the expected future salary growth of employees. The actuarial normal contribution rate is the percentage of an employee's salary that is contributed to a pension plan each year. It is based on the assumption that employees' salaries will increase over time, and the rate is set so that contributions made over an employee's career, when combined with investment returns, will be sufficient to fund their retirement benefits.
For new employees, the actuarial normal contribution rate may be different for PUC (Public Utility Commission) and TUC (Teacher's Union Commission) depending on factors such as the job category, salary structure, and projected salary growth. Actuaries use various actuarial assumptions and mathematical models to estimate future salary growth and calculate the actuarial normal contribution rate for each group of employees.