# the premium rate is <calculated> each year to <generate> just enough premium revenues

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#### Roundhouse

##### Senior Member
I am wondering if native speakers (or any proficient English Language users) are able to understand the following sentence without having to read it twice.

• The annual EI premium rate is set by the CEIC based on a 7-year break-even mechanism. Also referred to as the 7-year forecast break-even rate, the premium rate is calculated each year to generate just enough premium revenues during the next 7 years to ensure that at the end of the 7-year period, the amounts credited to the EI Account equals the amounts charged to it. This means that at the end of the 7-year period the balance in the EI Account is expected to be \$0.
What I am trying to say is this:

The premium rate is calculated each year in such a way that it will generate just enough premium revenues over the next 7 years to meet the EI expenditures incurred during those 7 years. At the end of the 7 year period, there will be no surplus or deficit, the EI Account will have a balance of \$0.

This explanation seems informal (this part: in such a way?) and I have to mention the technical terms about amounts being credited and charged.

So does this part in my original sentence "is calculated each year to generate" the same as saying "is calculated in such a way that it generates.."

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• #### Uncle Jack

##### Senior Member
I can only read "...calculated each year...during the next 7 years..." to mean that the period never ends; each year you look seven years into the future and set an appropriate rate for the next year. The following year you repeat the exercise.

However, from your description, it seems you have a seven-year period followed by another seven-year period, so what exactly is it that you do each year?
So does this part in my original sentence "is calculated each year to generate" the same as saying "is calculated in such a way that it generates.."
Adding "each year" is a significant change.

#### Roundhouse

##### Senior Member
I can only read "...calculated each year...during the next 7 years..." to mean that the period never ends; each year you look seven years into the future and set an appropriate rate for the next year. The following year you repeat the exercise.
Uncle Jack, yes you are correct the 7 year thing never ends and i missed writing out each year in the explanation part. But what do do think about the sentence in terms of readability or clarity of that part.

#### Uncle Jack

##### Senior Member
For what you are writing, the language is fine, and it is probably as readable as possible in this situation, but it may be let down by accuracy. You still have two mentions of "the end of the 7-year period", which you might do well to change since it now seems there isn't a seven year period, as such. "During the next seven years" is fine; it is the word "period" that suggests something with a fixed end point.

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