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Old 12-21-2017, 01:09 PM
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urysohn urysohn is offline
Join Date: Feb 2010
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It's inforce and new business. But there's an additional paragraph that says the change in the inforce tax reserve is to be spread over an 8-year period. i.e. that you can include 1/8 of the difference as a deduction for the next 8 years.
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Old 12-21-2017, 04:35 PM
am_vanquish am_vanquish is offline
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Studying for the zombie apocalpyse
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I'd be curious to hear how others are handling the impact of tax reform for asset adequacy analysis & RBC C3P1 modeling at 12/31/2017. From what I can tell, it's not required or prohibited to include the new tax reserve methodology & tax rate in modeling at 12/31/2017. (Please correct me if I'm missing something obvious there.)

We're currently leaning toward leaving tax reform items out of our 12/31/2017 models:
1. On the surface, it seems to be the more conservative approach to ignore the tax reform items.
2. The RBC blank for 12/31/2017 will not have updated factors to reflect the new tax scheme. Obviously the tax effect factors will need to change, but we have differing opinions on what other factors throughout RBC might also get updates (especially whether or not the factor-based minimum for C3P1 might be revised for 2018 & beyond).
3. (Half-joking): I don't want to code/validate the changes in our models on such short notice.
Listen. In order to maintain air-speed velocity, a swallow needs to beat its wings 43 times every second, amirite?

Ekki-Ekki-Ekki-Ekki-PTANG-Zoom-Boing. Z’nourrwringmm
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