Actuarial - misc (BenefitsLink.com)Headlines re Actuarial - misc, gathered by BenefitsLink.comText of PBGC Technical Update 07-3: Minimum Lump Sum Assumptions for Terminating Single-Employer Plans; Effect of Pension Protection Act of 2006- (Found June 24, 2008 ) Excerpt: "This Technical Update 07-3 provides guidance on lump sum valuation issues for single-employer plans that terminate in a standard termination pursuant to ERISA section 4041, with a termination date prior to, and a final distribution date on or after, the effective date of changes in the interest rate and mortality table used in calculating minimum lump sum values under the Pension Protection Act of 2006 ('PPA 2006')." (Pension Benefit Guaranty Corporation)http://www.pbgc.gov/practitioners/law-regulations-informal-guidance/content/tu16272.html Official Guidance IRS Rev. Rul. 2008-07: Backloading Rules as Applied to Traditional DB Plan Converting to Cash Balance Plan Prior to PPA '06 (PDF)- (Found June 24, 2008 ) Analyzes a hypothetical traditional pension plan that was converted into a cash balance pension plan prior to the effective date of the new conversion requirements under the Pension Protection Act of 2006. In the ruling participants had their pensions determined using the greater of (1) the benefit under a continuation of the pre-conversion plan formula for a limited number of years after the conversion date and (2) the benefit under the new cash balance formula. The ruling illustrates how,...http://benefitslink.com/IRS/revrul2008-07.pdf California Research Bureau Report Highlights Concerns About Actuarial Practices for Public Employee Benefits- (Found June 24, 2008 ) Excerpt: "The California Research Bureau (CRB) at the California State Library has released a report that explains in plain language how actuarial practices determine funding levels for public employee pensions and retiree health benefits." (State of California)http://www.library.ca.gov/pressreleases/pr_080204.html Health Care Costs Higher for Healthy Individuals Over Lifetime, Study Finds- (Found June 24, 2008 ) Excerpt: "Lifetime health care costs for obese individuals and smokers are lower than those for healthy individuals who live years longer, according to a study Monday on the Web site of the Public Library of Science Medicine . . . ." (KaiserNetwork.org)http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=50256 Finding a Solution for Retiree Health and Disability Benefits in the Public Sector- (Found June 24, 2008 ) Excerpt: "In valuing these benefits, actuaries will be making assumptions for benefit costs (pre 65 and post 65 retiree benefits), health care cost inflation (trend) rate, interest discount rate, retirement rates, turnover rates, disability rates, mortality rates, aging assumptions (agesex factors), asset return on investments (if any of the entities are funding benefits), salary increases if benefits or funding is based on salary (e.g., life insurance), plan participation percentage (some.http://www.soa.org/library/newsletters/the-actuary-magazine/2008/february/act-2008-vol5-is... Moving Beyond Retrospective Testing for LTCI Reserves- (Found June 24, 2008 ) Excerpt: "It has long been accepted among actuaries that retrospective -- or 'retro' testing -- is a blunt tool when it comes to establishing the ongoing adequacy of claim reserves for blocks of long-term care insurance. . . . Retro tests have a number of weaknesses. To begin with . . . ." (Milliman)http://www.milliman.com/expertise/healthcare/publications/published/moving-beyond-retrospe... Opinion The Case for Cash LTC Insurance Products- (Found June 24, 2008 ) Excerpt: "Criticism has recently targeted innovative benefit designs such as so-called 'cash' products. Cash products pay eligible insureds cash based on standard benefit triggers, versus the standard model of reimbursing paid services. Some believe cash products cannot be actuarially sound." (National Underwriter; free registration required)http://www.lifeandhealthinsurancenews.com/cms/nulh/Weekly%20Issues/issues/2008/05/Focus/L0... Guidance Overview CRS Study Evaluates Effect of PPA on Lump-Sum Distributions- (Found June 24, 2008 ) Excerpt: "The changes to the rules used for calculating minimum lump-sum distributions made by the Pension Protection Act of 2006 (PPA, P.L. 109-280) would tend to have the effect of substantially reducing lump-sums for younger participants, especially after 2011, and minimally reducing lump-sums for older participants, especially prior to 2011, according to a study by the Congressional Research Service (CRS)." (CCH Pension and Benefits)http://hr.cch.com/news/pension/021508a.asp Official Guidance Urgent: Most IRS Enrolled Actuaries Must Mail Renewal Form On or Before March 1- (Found June 24, 2008 ) The IRS notes at the target page that enrolled actuaries will not be sent an email or letter about renewal of the enrollment of enrolled actuaries. Form 5434-A (Rev. January 2008) is to be used by all individuals enrolled before January 1, 2008 who wish to have their renewal effective as of April 1, 2008; a $250 fee and reporting of continuing education hours is required. The instructions to the form say it must be 'received' by the IRS by March 1, 2008, but the target web page merely states,...http://www.irs.gov/taxpros/actuaries/article/0,,id=97447,00.html Official Guidance Text of IRS Notice 2008-29: Mortality Tables for Benefits to Disabled DB Plan Participants (PDF)- (Found June 24, 2008 ) 3 pages. Excerpt: "This notice provides guidance regarding the mortality tables that are permitted to be used to determine present values with respect to individuals who are entitled to benefits under a qualified defined benefit pension plan on account of disability. This notice reflects changes to the minimum funding requirements made by the Pension Protection Act of 2006, Pub. L. 109-280 (PPA '06). . . . Until further guidance is issued, the rules of Rev. Rul. 96-7 (including the...http://benefitslink.com/IRS/notice2008-29.pdf |