Model Funding Policies for Public Sector Pension and OPEB Plans


Session Handout

Model Funding Policies for Public Sector Pension and OPEB Plans January 16, 2012 - January 16, 2013

The new GASB standards not only separate accounting expense from plan funding but also leave any guidance for setting funding policy entirely to the actuarial profession. This provides actuaries with an opportunity to review the current range of public plan funding policies and to develop policies based on a principles based level cost actuarial model.

The California Actuarial Advisory Panel (CAAP) has prepared a development of such a level cost model which is now forming the basis for policy discussions within both actuarial and public employer organizations. The CAAP development includes evaluating a range of practices from the perspective of the CAAP’s level cost model and principles. At this audio/webcast members of the CAAP will present an overview of that development, from its underlying principles all the way through to its specific methods and parameters for cost methods, asset smoothing and unfunded liability amortization, including its evaluation of alternative policies.

This audio/webcast also serves as an introduction to a live symposium on public plan funding policies planned by the CCA for later in 2013. Anyone interested in public plan funding policy will find this a timely and practical source of emerging practice in this crucial policy area.

Session Category: Public Plans
Credits: EA Core: 1.50 CPD: 1.50
  • 1 . Paul Angelo Segal
  • 2 . Graham Alan Schmidt Cheiron, Inc.