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Old 07-01-2019, 05:44 PM
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Mary Pat Campbell
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Default ASOPs 27 and 35 -- Revised Drafts

http://www.actuarialstandardsboard.o...n-obligations/

Quote:
Selection of Economic Assumptions for Measuring Pension Obligations

Second Exposure Draft

.....
The last revision of ASOP No. 27 was issued in September 2013.

In response to specific requests for changes in the ASOPs and other activity related to public pension plans, in July 2014 the ASB issued a Request for Comments on the topic of ASOPs and Public Pension Plan Funding and Accounting. Over 50 comment letters were received covering a wide variety of potential ASB actions. In December 2014, the ASB formed the Pension Task Force and charged it with reviewing these comments and other relevant reports and input to develop recommendations for ASB next steps. In July 2015, the ASB held a public hearing on actuarial standards of practice applicable to actuarial work regarding public plans. The Pension Task Force provided its report to the ASB in February 2016. The report included suggestions for changes to the ASOPs that would apply to all areas of pension practice. In June 2016, the ASB directed its Pension Committee to draft appropriate modifications to the actuarial standards of practice, in accordance with ASB procedures, to implement the suggestions of the Pension Task Force. Draft revisions of ASOP Nos. 4, 27, and 35 were exposed for comment in March 2018 with a comment deadline of July 31, 2018.

Spoiler:

First Exposure Draft

The first exposure draft was issued in March 2018 with a comment deadline of July 31, 2018. Eighteen comment letters were received and considered in making changes that are reflected in the second exposure draft.

Notable Changes from the Existing ASOP

Notable changes made to the first exposure draft are summarized below. Additional changes were made to improve readability, clarity, or consistency.

Section 1.2, Scope, was expanded to clarify the application of the standard when an economic assumption is not selected by the actuary and whenever the actuary has an obligation to assess the reasonableness of an economic assumption that the actuary has not selected.
Section 1.4, Effective Date, was modified.
Section 3.5.6, Views of Experts, (now titled, Other Sources of Economic Data and Analyses) was renamed and clarified to provide for use of other sources of economic data and analyses.
Section 3.6, Selecting a Reasonable Assumption, was clarified to acknowledge that relevant historical data may not exist. The section also was further clarified concerning the expectation that a reasonable assumption will have no significant bias.
Section 3.6.3, Phase-In of Changes in Assumptions, was moved to section 3.15 and clarified to state that the reasonableness of an assumption must be evaluated at each measurement date at which it is applied, without regard for future planned changes in the assumption.
A new Section 3.6.3, Combined Effect of Assumptions, was added to be consistent with ASOP No. 35 and to indicate that the combined effect of assumptions selected by the actuary should be expected to have no significant bias.
Section 3.12, Consistency among Economic Assumptions Selected by the Actuary for a Particular Measurement, (now titled, Consistency among Assumptions Selected by the Actuary for a Particular Measurement) was amended to provide that the actuary is not required to select assumptions that are consistent with assumptions not selected by the actuary.
Section 3.14, Assumptions Not Selected by the Actuary, (now titled, Assessing Assumptions Not Selected by the Actuary) was modified to clarify the requirement that the actuary assess the reasonableness of each economic assumption that the actuary has not selected.
Section 3.16, Documentation, was added to conform to current ASOP format.
Section 4.1.2, Rationale for Assumptions, was modified concerning the disclosure of the rationale for assumptions not selected by the actuary and was clarified concerning the application to planned assumption changes after the measurement date.
Appendix 2, Arithmetic and Geometric Returns, was deleted because the educational material in the appendix is better suited for a practice note.
http://www.actuarialstandardsboard.o...xposure-draft/

Quote:
Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations

Second Exposure Draft
.....

he last revision of ASOP No. 35 was issued in September 2014.

In response to specific requests for changes in the ASOPs and other activity related to public pension plans, in July 2014 the ASB issued a Request for Comments on the topic of ASOPs and Public Pension Plan Funding and Accounting. Over 50 comment letters were received covering a wide variety of potential ASB actions. In December 2014, the ASB formed the Pension Task Force and charged it with reviewing these comments and other relevant reports and input to develop recommendations for ASB next steps. In July 2015, the ASB held a public hearing on actuarial standards of practice applicable to actuarial work regarding public plans. The Pension Task Force provided its report to the ASB in February 2016. The report included suggestions for changes to the ASOPs that would apply to all areas of pension practice. In June 2016, the ASB directed its Pension Committee to draft appropriate modifications to the actuarial standards of practice, in accordance with ASB procedures, to implement the suggestions of the Pension Task Force. Draft revisions of ASOP Nos. 4, 27, and 35 were exposed for comment in March 2018 with a comment deadline of July 31, 2018.

Spoiler:
First Exposure Draft

The first exposure draft was issued in March 2018 with a comment deadline of July 31, 2018. Sixteen comment letters were received and considered in making changes that are reflected in the second exposure draft.

Notable Changes from the First Exposure Draft

Notable changes made to the first exposure draft are summarized below. Additional changes were made to improve readability, clarity, or consistency.

Section 1.2, Scope, was expanded to clarify the application of the standard when a demographic assumption is not selected by the actuary and whenever the actuary has an obligation to assess the reasonableness of a demographic assumption that the actuary has not selected.
Section 1.4, Effective Date, was modified.
Section 3.2.5, Select a Reasonable Assumption, was clarified to acknowledge that relevant historical data may not exist. The section also was further clarified concerning the expectation that a reasonable assumption will have no significant bias.
Section 3.4, Phase-In of Changes in Assumptions, was moved to section 3.9 and clarified to state that the reasonableness of an assumption must be evaluated at each measurement date at which it is applied, without regard for future planned changes in the assumption.
Section 3.5.3, Mortality, (now section 3.4.3) was clarified.
Section 3.5.4, Mortality Improvement, (now section 3.4.4) was clarified.
Section 3.7, Consistency among Demographic Assumptions Selected by the Actuary for a Particular Measurement, (now section 3.6, Consistency among Assumptions Selected by the Actuary for a Particular Measurement) was amended to provide that the actuary is not required to select assumptions that are consistent with assumptions not selected by the actuary.
Section 3.9, Assumptions Not Selected by the Actuary, (now section 3.8, Assessing Assumptions Not Selected by the Actuary) was modified to clarify the requirement that the actuary assess the reasonableness of each demographic assumption that the actuary has not selected.
Section 3.10.4, Combined Effect of Assumptions, was clarified to indicate that the combined effect of assumptions selected by the actuary should be expected to have no significant bias.
Section 3.10.6, Views of Experts, (now titled, Other Sources of Demographic Data and Analyses) was renamed and clarified to provide for use of other sources of demographic data and analyses.
Section 3.11, Documentation, was added to conform to current ASOP format.
Section 4.1.2, Rationale for Assumptions, was modified concerning the disclosure of the rationale for assumptions not selected by the actuary, was clarified concerning the application to planned assumption changes after the measurement date, and was clarified regarding disclosures for mortality assumptions.

They're taking comments until Sept 15, 2019.
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Old 07-26-2019, 11:32 AM
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Mary Pat Campbell
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It was in the ASB Boxscore:
http://www.actuarialstandardsboard.o...ore.July19.pdf
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