Tag: Actuarial issues

Some DB Plans Changing Accounting Measures

Most companies used a single weighted average discount rate to measure the interest cost and service cost components of benefit cost, but PwC found, beginning in 2015, many companies adopted a multiple discount rate approach.

Maryland Pension System Further Reduces Return Assumption

State Treasurer Nancy K. Kopp says, “Recognizing that both the inflation experience and expectations for future inflation remain lower than the rate currently assumed, the Board felt it reasonable to reduce the expected return accordingly.”

PBGC Seeks Plan Sponsor Input on Agenda

Retirement plan industry stakeholders are asked what objectives and projects the pension insurance agency should prioritize in the years ahead. 

GASB Proposes Implementation Guide for OPEB Standards

The proposed Implementation Guide provides answers to questions intended to clarify, explain, or elaborate on the requirements of GASB Statement No. 75, and addresses a limited number of issues related to Statement No. 74.

Better Lump Sum Info Boosts Plan Participant Outcomes

Among DB plan participants who were given a choice between a lump sum or an annuity, fewer than half said that, at the time they made their decision, they recall being presented with information comparing the total amount of the lump sum versus the total value of the annuity payments.

Pension Plans of Largest U.S. Cities Offer Food For Thought

Many of the largest pension plans in the U.S. are lowering assumed long-term rates of return in light of global economic headwinds, which further contributes to declining funded ratios and puts a strain on cities' credit ratings.

MassMutual Introduces Custom Yield Curves for DBs

The custom solution offers plan sponsors and their auditors an alternative solution with greater transparency than similarly available benchmarks in the market, the firm says.

SOA Publishes Update to Mortality Improvement Scale

The updated improvement scale suggests U.S. mortality continues to improve, but at a slower average rate of improvement than previous years, which may decrease pension plan obligations slightly.