Wednesday, October 22, 2014

Multiemployer Alert: The new ASOP 27: What is the impact on multiemployer plan funding?



The Actuarial Standards Board (ASB) has approved a revised version of Actuarial Standards of Practice (ASOP) No. 27, Selection of Economic Assumptions for Measuring Pension Obligations. The new standard is effective for any actuarial work product with a measurement date on or after September 30, 2014. For a calendar year plan, this means the new standard will first apply to the 2015 actuarial valuation. Economic assumptions covered by ASOP 27 include the investment return, discount rate, inflation, postemployment benefit increases, compensation increases, and any other related assumptions. The greatest impact of the revised ASOP may appear in the development of multiemployer pension plan liabilities through its effect on the actuary’s selection of the investment return assumption.


Source: Milliman USA

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