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  #161  
Old 03-01-2018, 08:07 AM
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Carol Marler
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"
S Participation in a pending or threatened lawsuit against
the Academy."
Jmmmm.
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  #162  
Old 03-01-2018, 08:10 AM
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Try reading a few actuarial valuation reports for public pensions. It's interesting all the things that aren't in there, that are a part of testing insurer solvency.

Of course, insurers have to hold 100% reserves, plus risk capital on top of that. And most have substantial surplus on top of that.

Many U.S. public pensions are lucky if they're merely 70% funded at some very favorable valuation assumptions.
Wording in existing ASOPs gives the actuary a break from even opining on the appropriateness of assumptions, provided the public sponsor puts the absurd assumption into the form of a regulation. I still don't understand why nothing has been done about this - it's been pointed out to the standard setters,
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Carol Marler, "Just My Opinion"

Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.


My latest favorite quotes, updated Nov. 20, 2018.

Spoiler:
I should keep these four permanently.
Quote:
Originally Posted by rekrap View Post
JMO is right
Quote:
Originally Posted by campbell View Post
I agree with JMO.
Quote:
Originally Posted by Westley View Post
And def agree w/ JMO.
Quote:
Originally Posted by MG View Post
This. And everything else JMO wrote.
And this all purpose permanent quote:
Quote:
Originally Posted by Dr T Non-Fan View Post
Yup, it is always someone else's fault.
MORE:
All purpose response for careers forum:
Quote:
Originally Posted by DoctorNo View Post
Depends upon the employer and the situation.
Quote:
Originally Posted by El Actuario View Post
Therapists should ask the right questions, not give the right answers.
Quote:
Originally Posted by Sredni Vashtar View Post
I feel like ERM is 90% buzzwords, and that the underlying agenda is to make sure at least one of your Corporate Officers is not dumb.
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  #163  
Old 03-01-2018, 09:03 AM
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Wording in existing ASOPs gives the actuary a break from even opining on the appropriateness of assumptions, provided the public sponsor puts the absurd assumption into the form of a regulation. I still don't understand why nothing has been done about this - it's been pointed out to the standard setters,
Perhaps if more people had the opportunity to witness and participate in the deliberations associated with creating those standards
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  #164  
Old 03-05-2018, 03:07 PM
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"
S Participation in a pending or threatened lawsuit against
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Jmmmm.
Typical power play. You have rights until you try to use them.
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  #165  
Old 03-06-2018, 08:18 AM
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Quote:
Try reading a few actuarial valuation reports for public pensions. It's interesting all the things that aren't in there, that are a part of testing insurer solvency.
Quote:
Wording in existing ASOPs gives the actuary a break from even opining on the appropriateness of assumptions, provided the public sponsor puts the absurd assumption into the form of a regulation. I still don't understand why nothing has been done about this - it's been pointed out to the standard setters,
Yeah. How easy in theory to require Asset Adequacy Testing for pension plans, especially those where the sponsor formally contemplates funding some increasing toward 100% percentage of the ARC. And this AAT could require actuary-approved forecast assumptions, in the event that they differ from sponsor assumptions.

I don't see how AAA (or ASB) adopting such a requirement in some revised ASOP could be fought by the plan sponsors. It is tough for a particular actuary to take a stand, but not that tough for the entire profession. (Are we worried that states would just use non-AAA actuaries?)
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  #166  
Old 03-06-2018, 09:36 AM
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They might resort to... =shudder= ...accountants!
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  #167  
Old 04-18-2018, 12:16 PM
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via email:

Quote:
Proposed Revision of ASOP Nos. 4, 27, and 35
The Actuarial Standards Board (ASB) of the American Academy of Actuaries recently approved exposure drafts of revisions of Actuarial Standard of Practice (ASOP) Nos. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions; 27, Selection of Economic Assumptions for Measuring Pension Obligations; and 35, Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations.

The revisions are based on suggestions from the Pension Task Force report issued in 2016 as a result of comments received on a 2014 Request for Comments on ASOPs and Public Pension Plan Funding and Accounting as well as a subsequent 2015 public hearing held on proposed ASOPs applicable to actuarial work regarding public plans. The ASB directed its Pension Committee to draft appropriate modifications to pension ASOPs to implement the Pension Task Force suggestions. The modifications are reflected in the exposure drafts of ASOP Nos. 4, 27, and 35.

The comment deadline for the exposure drafts is July 31, 2018. Information on how to submit comments can be found in the drafts, which can be viewed here.
Current exposure drafts:
http://www.actuarialstandardsboard.o...posure-drafts/


ASOP 4 exposure draft:
http://www.actuarialstandardsboard.o...on-march-2018/

ASOP 27 exposure draft:
http://www.actuarialstandardsboard.o...on-march-2018/

ASOP 35 exposure draft:
http://www.actuarialstandardsboard.o...on-march-2018/
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  #168  
Old 04-18-2018, 01:05 PM
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Thanks for posting this. Since I'm so retired these days, I may not bother to submit a response, but I really look forward to following the discussion here.

May I ask a lazy question or two? Has anything been done to close the loophole for public pensions which excuses the actuary from opining on assumptions required by law or regulation? Or can the plan sponsor specify its preferred assumptions, reasonable or not, and expect the actuary to follow them without question?
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Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.


My latest favorite quotes, updated Nov. 20, 2018.

Spoiler:
I should keep these four permanently.
Quote:
Originally Posted by rekrap View Post
JMO is right
Quote:
Originally Posted by campbell View Post
I agree with JMO.
Quote:
Originally Posted by Westley View Post
And def agree w/ JMO.
Quote:
Originally Posted by MG View Post
This. And everything else JMO wrote.
And this all purpose permanent quote:
Quote:
Originally Posted by Dr T Non-Fan View Post
Yup, it is always someone else's fault.
MORE:
All purpose response for careers forum:
Quote:
Originally Posted by DoctorNo View Post
Depends upon the employer and the situation.
Quote:
Originally Posted by El Actuario View Post
Therapists should ask the right questions, not give the right answers.
Quote:
Originally Posted by Sredni Vashtar View Post
I feel like ERM is 90% buzzwords, and that the underlying agenda is to make sure at least one of your Corporate Officers is not dumb.
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  #169  
Old 04-18-2018, 01:11 PM
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Carol Marler
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Answered my own question. See section 2.6 of ASOP 27, "For this purpose, an assumption or method selected by a governmental entity for a plan that such governmental entity or a political subdivision of that entity directly or indirectly sponsors is not a prescribed assumption or method set by law."

Excellent!!
__________________
Carol Marler, "Just My Opinion"

Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.


My latest favorite quotes, updated Nov. 20, 2018.

Spoiler:
I should keep these four permanently.
Quote:
Originally Posted by rekrap View Post
JMO is right
Quote:
Originally Posted by campbell View Post
I agree with JMO.
Quote:
Originally Posted by Westley View Post
And def agree w/ JMO.
Quote:
Originally Posted by MG View Post
This. And everything else JMO wrote.
And this all purpose permanent quote:
Quote:
Originally Posted by Dr T Non-Fan View Post
Yup, it is always someone else's fault.
MORE:
All purpose response for careers forum:
Quote:
Originally Posted by DoctorNo View Post
Depends upon the employer and the situation.
Quote:
Originally Posted by El Actuario View Post
Therapists should ask the right questions, not give the right answers.
Quote:
Originally Posted by Sredni Vashtar View Post
I feel like ERM is 90% buzzwords, and that the underlying agenda is to make sure at least one of your Corporate Officers is not dumb.
Reply With Quote
  #170  
Old 04-18-2018, 01:30 PM
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Quote:
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Answered my own question. See section 2.6 of ASOP 27, "For this purpose, an assumption or method selected by a governmental entity for a plan that such governmental entity or a political subdivision of that entity directly or indirectly sponsors is not a prescribed assumption or method set by law."

Excellent!!
I haven't read the exposure draft yet, but that is interesting. I believe the intent was to exclude federally mandated assumptions for corporate plans, but this also seems to exclude assumptions mandated by state law for a local plan.
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