Sessions by Topic

During the past year, we have seen rising inflation, interest rates hikes, and equity market volatility – all of which suggest the future is unlikely to look like the past. So, how do we reconcile the past with the present and the future? Speakers explore the various economic expectations and discuss the effect these factors have on the future of retirement programs.

In this highly interactive session, panelists and audience members discuss solutions to difficult ethical situations faced by actuaries in their day‐to‐day practices, including dealing with the IRS, correcting errors, billing clients, and clarity of communications. As applicable, we also consider interactions – reinforcing or conflicting – between Professionalism, Law and Ethics, as well as the differences between rules from the Joint Board for the Enrollment of Actuaries and from the US actuarial organizations (AAA, SOA, CCA, ASEA).

The recent revisions to the United States Qualification Standards include a bias topic continuing education requirement for all actuaries. Learn about examples of how pension actuaries encounter bias in the data, assumptions and models that they use in providing actuarial services.

Panelists discuss the rules and open issues surrounding funding method changes for single-employer and multiemployer plans, including IRS filings, automatic approvals, and lessons learned.

The panelists discuss trends in DC plan designs, with emphasis on the interaction between and implications of design and compliance/nondiscrimination testing.

Panelists discuss why and when estimation techniques are still useful in the defined benefit plan environment. Consideration is given to current technology costs and actuarial standards that may bring into question the utility of “back-of-the-envelop” calculations. Panelists also address whether the increasingly complex scenarios often applicable to pension work are appropriate for estimation, or conversely whether the only method available for assessing the reasonableness of “black box” applications may be rules of thumb.

So your client wants to settle their pension liabilities. The speakers on this panel examine the decision considerations between using lump sum cash outs or annuities. They discuss anti‐selection, legal and compliance issues. Also the panel looks at lump sum cash out implementation steps, communications strategies, and recent plan sponsor experience.

Pension and other retirement benefit valuations require actuaries to set many different assumptions. For medium-sized plans this often involves reviewing experience data that is too small to be credible but too large to ignore. Panelists explore the art and science of fitting appropriate rates to small experience sets, leveraging information from other similar sources, and validating proposed rates as better than the prior assumption when applicable. Panelists also discuss actuarial judgement and adjusting rates to better predict the future as opposed to replicating the past.

The selection of mortality and other demographic assumptions has always been central to the role of the actuary. The altering dynamics brought about by COVID such as the “War for Talent”, the advent of remote & flexible work environments, and the potential long term COVID effects may change the demographic landscape as we know it. Employers may not only experience increased turnover, but also see changing retirement and mortality improvement patterns in the future. Our presenters discuss these demographic assumptions in the context of the current landscape and changing environment, with a focus on how we can best help clients understand and manage their risks.

The DC plan landscape continues to evolve. Speakers address some key issues that plan sponsors and consultants want to be aware of as they navigate the DC plan landscape. The speakers point out the changes to DC plans from SECURE 2.0, the growing Pooled Employer Plan market, and prevailing attitudes from employees about DC benefits based on recent research from the SOA Retirement Section.

Plans are continuing to experience problems with missing participants, many who may be past the Normal Retirement Date. Do you know what to do when you are trying to terminate the plan and can’t locate someone? What about when people appear after age 65 or age 70? Get some help with your questions as our panel reviews how to determine the benefits that should be provided when people reappear, and thoughts on what to do if they don’t.

Speakers at this session review the Schedule SB, paying particular attention to changes to the schedule to accommodate recent regulatory and legislative changes. There is also a review of the many attachments that are required, including those that must be provided for all plans and those that are only required for certain types of plans or plans that have made special elections.

Speakers discuss the latest developments in the private pension plan sector. Topics that may be covered include recently enacted and pending legislation; proposed and final regulatory guidance and other regulatory activity; recent litigation; and pending and adopted revisions to the Actuarial Standards of Practice.

Your client’s plan has been frozen for a number of years. Coverage has declined, assets may have grown or decreased, interest rates have risen precipitously. The plan sponsor needs to develop a strategy to address short-term and long-term issues, including how to meet minimum funding requirements, how to comply with the rules of IRC sections 401(a)(4), 410(b), and 401(a)(26) (which may force unanticipated plan changes), and how to complete an efficient and cost-effective plan termination (if that’s their goal). The speakers address potential issues and possible strategies to avoid them. Speakers may also address similar issues encountered in some closed plan situations.

The speakers review recent court decisions, ongoing litigation and complaints filed that could affect defined benefit plans or pension actuaries. This year's cases include actuarial malpractice involving public plans, multiemployer plans, and single employer plans, in addition to cases involving actuarial assumptions in several different contexts.

Speakers address recent accounting issues and considerations from the perspective of both actuaries and auditors under ASC 715, 960 and 965 as well as IAS 19.

Panelists utilize case studies to discuss the accounting considerations under both US GAAP and IFRS for special events including settlements and curtailments.

To terminate or not to terminate, that is the question. While there is no “one‐size‐fits‐all” answer to this important question, there are several data points and decision criteria that come into play. Panelists at this session walk through many of the important considerations and strategies that come into play in determining whether to terminate, and if so, when to terminate.

The panelists provide a current look at pension surplus opportunities for sponsors of defined benefit plans. Also covered are the variety of options sponsors have to utilize surpluses efficiently and effectively, as well as alternative approaches for surplus use in the plan termination process. All practical options available to employers are discussed, from the common strategies to the lesser known ones. This session should prove valuable for actuaries who may be in a position to consult with sponsors facing this scenario, now or in the future.

The panelists discuss funding and benefit restrictions related to mergers and/or spinoffs under IRC 430 and 436.

A panel of representatives from the IRS, PBGC, and Treasury Department provide updates and field your questions on a number of challenging issues. This is your chance to ask what you've always wanted to know about guidance. This session is not intended to address specific client issues.

We all issue actuarial reports, but do we know what should (and must) be in them? In this world of electronic communications, are we sure we know exactly what is included under the umbrella of “actuarial communication?” With the recent changes in communication and disclosure rules in the ASOPs, it can be easy to miss a step. The presenters provide practical advice to help you make sure your actuarial reports comply with professionalism standards and the various ASOP requirements. You can also learn some of the common pitfalls to avoid when issuing an actuarial communication.

In many situations, outside bodies place limits on our professional judgment – IRS, FASB, PBGC, etc. If you’re looking for an overview of the ASB’s standards affecting pension actuaries issued by our own profession, this session is for you!

Representatives of the Joint Board for the Enrollment of Actuaries discuss current developments and other information relevant to Enrolled Actuaries and the profession at large. Topics may include tips to successfully prepare an application for initial enrollment, navigating an audit of continuing education, and complying with the regulations that govern Enrolled Actuaries. Attendee questions are encouraged.

The past few years have not been “business as usual” when it comes to demographic experience. What can we expect for the future? Is mortality improvement a thing of the past? Beyond mortality, changes in turnover, retirement, disability, and hiring have been observed. The panelists discuss potential impacts on demographic assumptions.

Speakers investigate the overlapping roles and responsibilities of the actuary and the investment consultant. How should the trustees understand differences between our often very different expected returns? And how can we work together to bring the trustees to a prudent understanding of the relationship between asset allocation and the actuary’s investment return assumption?

Why do auditors ask those strange questions? The panelists explain the reasons behind questions specific to public plan issues, and present common situations where further discussions are required.

The revised ASOP No. 4 takes effect for actuarial valuations with measurement dates on or after February 15, 2023. As revised, ASOP No. 4 presents technical and communication challenges for actuaries for public plans. The panelists discuss the changes and the challenges presented, including those related to the new Low‐Default‐Risk Obligation Measure, reasonable actuarially determined contributions, and implications of the plan’s funding policy.

Plans have experienced a period of high inflation that impacted cost-of-living adjustments (COLAs) and plan asset values. The current investment environment is somewhat volatile as the Federal Reserve takes steps to curb inflation while Congress grapples with budget issues. Panelists review the impact of the recent inflation on public plans, the current investment environment, and what steps plans are taking in response.

Join your public plan colleagues in a candid, open discussion of current issues. Session topics may include ASOP 4, plan design, impact of inflation, and practical discussions of issues raised in other sessions.

Over the past year, PBGC has finalized regulations governing the Special Financial Assistance (SFA) Program and is in full implementation mode. The Agency has also issued proposed regulations on withdrawal liability interest rate assumptions. This is an opportunity for multiemployer pension actuaries to hear directly from PBGC on the SFA program and other key topics of interest in regard to PBGC’s multiemployer insurance program. Representatives:

• Discuss statistics about plans that have already received assistance, observations on the application process, PBGC guidance, “lessons learned” from applications received to-date, what to expect for plans that have not yet applied, and information on compliance with conditions after receiving SFA;
• Provide an update on the proposed 4213 regulation on withdrawal liability;
• Review PBGC’s most recent financial position and projected funding position of the multiemployer insurance program; and
• Cover other PBGC activities – including upcoming regulations, recent PBGC guidance, and newly available resources.

Panelists provide an update on the special financial assistance (SFA) program for multiemployer pension plans, as provided under the American Rescue Plan Act of 2021. Practitioners and a senior actuary from the Pension Benefit Guaranty Corporation (PBGC) discuss lessons learned from plans that have been approved for SFA and considerations for plans that have submitted “lock-in” applications. They also address strategies to maximize the likelihood of long-term solvency after receiving SFA as well as adherence with the conditions and restrictions under the final rule.

We appear to be at a crossroads with respect to interest (or discount) rates that actuaries may use to determine withdrawal liability. Over the past year, two Federal Appellate Courts (in the DC and 9th Circuits) ruled that the use of PBGC Section 4044 interest rates were not in compliance with ERISA, following the 2021 Sofco 6th Circuit decision that banned the use of the “Segal Blend” in that jurisdiction. The panel reviews those cases. Moreover, while MPPAA gave PBGC the authority to issue regulations in this area since 1980, it was only this past Fall that proposed regulations were released. As it is unlikely that a final regulation will be issued by early May, we cover the range of formal comments that the proposal received, and the potential implications of the proposed rule if adopted.

The PBGC issued final regulations on simplified adjustments in computing withdrawal liability in January 2021. Final regulations on Special Financial Assistance by PBGC (SFAP) were issued in July 2022. Panelists discuss the pertinent provisions of the final regulations and their use, with special emphasis on the calculation of withdrawal liability by plans receiving SFAP. A representative of the PBGC provides additional commentary on the use of these regulations.

Starting in 2008, the Actuarial Information form for the Form 5500 has been Schedule MB for multiemployer plans. The 2022 Schedule MB has some significant changes from the schedules for prior years. The panelists review the line items of the MB with special attention to the changes and related instructions as well as related changes to the Schedule R.

Cash balance plans have become the plan of choice for small business and professional groups. In most cases such plans are combined with a 401(k) or other defined contribution plan maintained by the employer. Presenters detail the deduction and funding issues such designs can encounter, and discuss testing, top-heavy and other matters.

Small plans can be tricky. Lawmakers and regulators create pitfalls to designs. Attending this presentation will help you navigate those gotchas before they attack your small plans. The speakers discuss issues based upon their practical experience.

Like it or not, everyone will have to take over a plan at some point. What is the process? What are your professional obligations? How do you protect yourself and your client? Is doing a takeover even necessary? Join us for a lively session where we answer these questions, and (hopefully) discuss some real-life situations from our audience. Bring your war stories!

Speakers cover the various issues in determining lump sum benefits including calculation methodologies, how Section 436 restrictions can impact the lump sum calculations, and Section 415 and 417 issues.