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  #171  
Old 04-18-2018, 02:25 PM
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Carol Marler
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Originally Posted by Kenny View Post
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.
My previous post in which I posed the question explains why this change was needed. Some public plans were imposing overly optimistic mortality and interest assumptions and doing it in a form such that they could tell their actuary NOT to comment on whether the assumption was reasonable.

The language I quoted is not about federally mandated assumptions for corporate plans. It's only when the plan sponsor tries to turn their politically motivated assumptions into "law or regulation" that this rule comes into play.
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  #172  
Old 04-18-2018, 03:19 PM
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The ASB just sent out a "corrected" email and said disregard the earlier email. So of course I immediately compare the emails to find out what changed and I didn't notice anything (other than the italicized message at the top).

Anybody know what was corrected?
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  #173  
Old 04-18-2018, 04:05 PM
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I got only one email, so...
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  #174  
Old 04-18-2018, 04:41 PM
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just got the other one... and I can't see any differences, other than the subject line and that intro message
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  #175  
Old 04-18-2018, 04:43 PM
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I think they didn't like the "New:" in the subject line of the prior email. I searched my emails, and didn't see any others from ASB that started "New: Proposed..." blah blah
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  #176  
Old 04-18-2018, 08:13 PM
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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 agree with you that the ASB's intent is clear and good. However...

One concern is that state legislatures will just spend some energy figuring out new ways to structure things.
- Maybe the legislature will select the assumptions and the executive branch will sponsor the plan.
- Maybe the state will set the assumptions for teacher plans, give money to school boards, and let the school boards take over sponsorship of the plans
- etc

And another concern is that the actuary will be selected based in part on a willingness to agree that the new structure, under the new ASOP, allows the sponsor to set the assumprion.

My suggestion....just make the actuary give an opinion about every assumption. Sure maybe that means that actuaries say something about (for example) federally mandated discount rate assumptions, but that is not a terrible price to pay. We should make sure that any selected actuary must comment on every key assumption, no matter how the state or locality twists and turns.
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  #177  
Old 04-18-2018, 08:28 PM
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Quote:
Originally Posted by msydlaske View Post
I agree with you that the ASB's intent is clear and good. However...

One concern is that state legislatures will just spend some energy figuring out new ways to structure things.
- Maybe the legislature will select the assumptions and the executive branch will sponsor the plan.
- Maybe the state will set the assumptions for teacher plans, give money to school boards, and let the school boards take over sponsorship of the plans
- etc

And another concern is that the actuary will be selected based in part on a willingness to agree that the new structure, under the new ASOP, allows the sponsor to set the assumprion.

My suggestion....just make the actuary give an opinion about every assumption. Sure maybe that means that actuaries say something about (for example) federally mandated discount rate assumptions, but that is not a terrible price to pay. We should make sure that any selected actuary must comment on every key assumption, no matter how the state or locality twists and turns.
Maybe you're right But we asked about this loophole before and the ASB didn't do anything about it. We should at least give this a chance to work, even if it isn't perfectly foolproof.
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I agree with JMO.
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Originally Posted by Westley View Post
And def agree w/ JMO.
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Originally Posted by MG View Post
This. And everything else JMO wrote.
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Yup, it is always someone else's fault.
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Originally Posted by DoctorNo View Post
Depends upon the employer and the situation.
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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  #178  
Old 04-18-2018, 08:35 PM
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Mary Pat Campbell
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remember the word "indirectly"



Anyway, I don't work in that field, so I will be interested in seeing comments from those who do.

I'm not planning, necessarily, to submit a comment. But I will read the comments.
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