De-risking has been in the press frequently. Come hear experts in the field discuss how plans large and small can use techniques to minimize the impact of volatility on cash flow and accounting. However, in a low/rising interest rate environment, many plan sponsors are concerned about increasing their fixed income positions. The panel addresses strategies being considered by plan sponsors including using dynamic asset allocation (DAA or glide path) to move toward a liability-driven investment strategy. (Information about settling plan liabilities is discussed in Session 407.)

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The panelists for this session provide a brief overview of existing Actuarial Standards of Practice that apply to pension actuaries focusing on recent changes, the effective dates for those changes and the current disclosure requirements. There also is a discussion of updates to existing standards that are currently under consideration as well as potential new standards that may impact pension actuaries.

The presenters at this session address the role of standards in actuarial practice; why the standards should matter to pension actuaries; how standards fit into generally accepted actuarial principles and practices; the level of prescription in ASOPs; who does the actuary serve when engaged to provide actuarial services; and to what extent do the standards serve the public interest, including those of clients, regulators and legislators.

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Panelists review the new guidance from the past year, with special focus on important developments that occur shortly before the meeting. The speakers may address rulings, regulations, litigation, and other exciting news. (Note that the allocation between core and noncore credit depends on the final actual content of the session.)

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Actuaries have historically focused on the central expectation for their estimates. With the volatility of the last decade and in today's mark-to-market environment, however, there is a growing need to understand the full range of potential actuarial outcomes. This helps give plan sponsors a full understanding of the financial implications of various economic scenarios, including the risk of extreme events that can jeopardize the short term financial viability of a pension plan. Stochastic modeling is one tool for illustrating risk that is becoming more readily available to all actuaries.

The speakers at this presentation focus on stochastic modeling for actuaries. They discuss when it is appropriate, and how to conduct a stochastic projection analysis. The discussion also includes consideration of both actuarial and economic assumptions, along with the role of the actuary and investment advisor. An interpretation of stochastic results, both in absolute and relative terms, and the conclusions which an actuary may reach is also discussed.

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Successfully accumulated a substantial sum in your 401(k) or other retirement plan? How do you assure it will last a lifetime? Presenters discuss many of the options to convert a lump sum into a secure lifetime and ways in which employer sponsored plans can be enhanced. Public policy changes are suggested and examined that may improve retirement security.

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With its recent changes to public sector accounting standards for pensions, the Governmental Accounting Standards Board (GASB) clearly delineated accounting as separate from funding standards. Since the prior GASB standards had effectively become funding standards, the new split between funding and accounting left public plans without a universal funding standard. However, sponsors need to have a funding policy. A panel of practitioners discusses considerations in setting a funding policy. The Pension Practice Council of the American Academy of Actuaries has an issue brief on the subject. Also, the Conference of Consulting Actuaries' (CCA's) Public Plan Community (PPC) has worked over the last year to develop Public Plan Funding Policy Guidelines. The presenters at this session give an update on the PPC's progress on this important subject.

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PPA 2006 requires beginning of year valuations except for plans with fewer than 100 participants. The presenters at this session focus on the challenges posed by year end valuations such as computation of AFTAP and credit balance elections.

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Starting January 1, 2015, selected multiemployer provisions of the Pension Protection Act of 2006 (PPA’06) are scheduled to sunset. As this date approaches, more and more activity will take place regarding which multiemployer PPA’06 provisions should remain in place, and what new ideas are necessary to strengthen plans. The presenters at this session cover some of the proposals that have been offered so far, and the current state of thinking relative to what will take place in 2015.

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Hear a review of the basic funding rules, including guidance provided under the Pension Protection Act. Speakers at this session review how to determine a plan's minimum required contribution and maximum deductible contribution. The presenters also review the impact of MAP-21 on these calculations and changes to funding requirements when a plan is at-risk.

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Variable benefit plans pose a challenge to the actuary in complying with certain prescribed assumptions. How should the different interest rates prescribed by the PPA, both stabilized and non-stabilize, for funding, the 417(e) rate for lump sums, or the FASB rate for financial statements, be reflected when valuing benefits of this type. How do embedded option features, such as minimum benefits or caps or floors on annual returns affect these valuation principles?

Panelists working on a future "Academy Practice Note" describe the multiple issues and considerations involved in determining appropriate funding targets, disclosure amounts and relative values for these non-fixed benefits.

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After health care reform and the expansion of Medicare Part D benefits, more employers that ever have been moving to health care exchanges for their Medicare eligible retirees. Employers have seen significant accounting savings as they’ve adopted a defined contribution approach with health reimbursement accounts (HRAs) and leveraged the post-65 individual insurance market. Employers are watching the development of state health care exchanges and considering whether their defined contribution approach may be extended to pre-Medicare retirees. Our panel reviews employer objectives around adopting a defined contribution approach, HRA design considerations, and valuation process.

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The presenters at this session explore the funding rules, focusing on strategies with respect to quarterly contributions and managing credit balances. The focus is on more complicated problems and solutions with respect to funding of single employer plans. A thorough understanding of the funding rules is assumed.

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The Supreme Court raised more questions than it answered when it ruled the Federal Government must recognize same-sex marriages. Which beneficiary designations are invalid? Which jurisdiction’s law applies to determine if a participant is married? The panel reviews the myriad ways in which benefit plans are affected, alert you to open questions and suggest practical approaches to dealing with unknowns.

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Panelists discuss ethical problems faced by actuaries in their everyday practices. This session is highly interactive with members of the audience, as well as panelists, suggesting solutions. (This session is not recorded.)

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Many governmental plan boards and sponsors are asking their actuaries for advice on plan design and contribution changes to address issues of underfunding and sustainability. The speakers at this session provide a brief overview of the type of plan design changes that have occurred since 2008 and focus on the legal constraints on reducing benefits and increasing contributions for participants. The panelists also address other "change agents" affecting governmental plans, such as municipal bankruptcy and IRS policies.

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Terminating small plans poses unique problems. Panelists discuss how to deal with multiple owners in an underfunded plan covered by PBGC, High-25 and 436 Restrictions, lost participants and annuitizations.

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This is a very basic session that helps explain multiemployer plans that are targeted to those actuaries that don’t work directly with multiemployer plans, but may work with employers that participate in multiemployer plans. Topics to be covered include typical plan designs, funding requirements, zone status and its effect on contributing employers and, of course, withdrawal liability. (This is a session that practitioners that work with multiemployer plans will find to be very basic.)

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A panel of PBGC representatives provides an overview of recently published PBGC guidance, highlights from this year’s “Blue Book”, the premium rules and other issues of interest to actuaries. There is plenty of time for questions from “the audience.” Participants are encouraged to come prepared to discuss issues related to a PBGC topic.

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Why do auditors ask those strange questions? The panelists help actuaries understand the reasons behind these questions. The roles of the preparing and the reviewing actuaries are outlined, as well as common areas where further discussions are required. (This session is not recorded.)

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PPA and MAP-21 rules present a labyrinth of funded status measures used for funding, PBGC requirements, benefit restrictions, and participant funding notices. Speakers at this session arm you with string to navigate the maze of liabilities, assets, and interest rates and a hidden sword to slay the minotaur of funding balances and measurement/determination date complexity. By attending this session, you can avoid the tragedy of misapplying the rules.

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In 2012, to help further the dialogue on issues related to public pension plans, the Society of Actuaries commissioned a multidisciplinary blue ribbon panel to consider the causes of underfunding in public pension plans and make recommendations as to how governments can more securely fund plans going forward and improve plan management. Speakers at this session discuss the panel's key findings and how their conclusions might inform future practice.

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Small plans can be tricky. Often, the lawmakers create inadvertent pitfalls just when they thought they were helping you out. The panelists’ presentation should help you navigate those gotchas before they attack your small plans. Bring your issues and have them discussed.

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Schedule MB has not changed much recently, but the instructions keep expanding, or clarification has been added. The speakers describe a line-by-line review of the Schedule MB with commentary on the instructions for completing each line. They also touch on the items of Schedule R that actuaries are often asked to help complete.

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With auditors questioning assumptions, and changing ASOP guidance, experience studies are becoming more common. The panel at this session provides information about how and when these studies ought to be done, how to interpret results, and how to use those results to set assumptions. The speakers touch on economic, non-economic, and mortality assumptions.

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Pension plans for not-for-profit organizations have issues that are both similar to and different from those of the typical for-profit companies. Some of the issues involve the determination of the controlled group, dealing with for-profit subsidiaries, excessive compensation to officers, and the less concern for tax deductions. Hear a panel of experienced practitioners discuss these issues and the legal and actuarial implications that follow.

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Over the last century, general population mortality has improved significantly, and this trend appears likely to continue at least over the near term. In 2010, the Society of Actuaries’ Retirement Plans Experience Committee (RPEC) began a Pension Mortality Study, and it is expected to be completed by the time of the 2014 EA Meeting. This study includes a comprehensive review of recent mortality experience of uninsured retirement plans in the US. As a result of this study, the SOA is expected to publish a new set of retirement plan mortality tables and mortality improvement rates that are the successors to the RP-2000 tables and Scale AA.

The presenters at this session review the results of the new mortality study, the updated mortality tables, and mortality improvement rates. A discussion of how the use of the tables and improvement rates impact valuations and plan administration is discussed. Also discussed is the use of new tables in light of current regulations, accounting standards and standards of practice. Finally, tips are provided on how to explain to plan sponsors the recent trends in mortality improvement and the importance of accurately reflecting projected mortality and mortality improvement when providing cost estimates to plan sponsors.

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The panel reviews recent court decisions affecting defined benefit plans and pension actuaries.

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Experienced practitioners involved in the process of developing the Gray Book lead a review of government responses to this year's questions. They comment on responses of particular interest and facilitate a dialogue on practical implications of the responses and alternative approaches where complete answers are not provided.

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People are working longer and a mobile workforce leaves many plan administrators processing late retirement distributions and searching for participants gone missing at their normal retirement date. When participants remain employed or delay commencement of their benefit past normal retirement, a plethora of requirements apply that can lead to very complex benefit determinations. Our panel of experts in these issues discuss the intricacies of suspension of benefits, post-NRD accrual rules, retroactive annuity starting dates, benefit restrictions and 401(a)(9) minimum required distributions, including correction measures for addressing compliance failures with respect to these issues.

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Everyone knows that governmental DB plans are regulated by the Internal Revenue Code (IRC) but do you know which sections of the IRC apply to public sector plans? Come hear a review of the qualifications requirements that apply to public sector plans and how they impact our work.

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Small plan design options are covered with a focus on current issues, common problems and optimal solutions. Examples include combination of plans, safe harbors and general tested formulas. The speakers at this session focus on cash balance and other hybrid formulas including combination plans.

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This session is NOT a review of how to calculate withdrawal liability but a discussion of issues related to withdrawal liability. New approaches to withdrawal liability are discussed.

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So your client wants to settle their pension liabilities. The speakers on this panel examine the decision considerations between using lump sum cash outs or annuities. They discuss anti-selection, legal and compliance issues. Also the panel looks at lump sum cash out implementation steps, communications strategies, and recent plan sponsor experience. (Information about de-risking investment strategies is discussed in Session 207)

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Pension rules have become so complicated that no one can get everything right all the time. What do you do when you discover a compliance problem? Experts discuss real-life case studies and explain the correction programs, including Self-correction Program (SCP), Voluntary Correction Program (VCP), and Audit Closing Agreement Program (Audit CAP). (Linked to 602).

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Multiple annuity starting dates are on the rise as plans move in and out of benefit restrictions and phased retirement becomes more common. But the regulations are largely non-existent and what guidance exists is at times difficult to find. Panelists discuss the many complications multiple annuity starting dates (MASD) create, including 415 issues, consent issues, form of payment issues, etc.

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Panelists discuss ethical problems faced by actuaries in their everyday practices. This session is highly interactive with members of the audience, as well as panelists, suggesting solutions. (This session is not the same as Session 203 "Ethics," and "Ethics" is not a prerequisite.) (This session is not recorded.)

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Measuring pension obligations involves a process of discounting expected future benefit payments. The process of setting the discount rate is therefore a key aspect of the overall process of measuring pension obligations. For public plans and multiemployer plans, the discount rate is often set by a board (such as a board of trustees) with input from the plan’s actuary and investment professionals. The American Academy of Actuaries has an issue brief concerning the discount rate and the Government Accounting Office has been asked to look at the discount rate used. Hear a discussion of the process and the issues involved as well as the insights of the Academy’s paper and any GAO report available.

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Small plan design options are covered with a focus on current issues, common problems and optimal solutions. Examples include combination of plans, safe harbors and general tested formulas. The presenters at this session focus on traditional (non-cash balance) plan design.

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It seems every law change brings additional participant notices. The panel explores the triggers, wording and timing of ERISA 101(j) Notices for benefit payment restrictions, unpredictable contingent event benefits (UCEB) and benefit accruals, as well as when and what must be included in the Annual Funding Notices for MAP-21.

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Presenters at this session review the rules with respect to cash balance plans, focusing on plans sponsored by larger companies. Topics include, among others, market rates of return, whipsaw considerations, back-loading, and age discrimination.

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As companies transition away from traditional defined benefit plan formulas, many choose to grandfather some or all of their existing employees under the prior benefit formula. While these grandfathering arrangements are helpful in protecting older, longer-service employees, over time a defined benefit plan with a grandfathered arrangement can become disproportionately highly compensated and run afoul of various regulatory nondiscrimination requirements.

The compliance experts leading this session explore the range of potential testing challenges facing these arrangements and the options available for addressing them within the current regulatory framework. They also discuss recommendations from various parties to provide relief for these plans in a manner that preserves the intent of the nondiscrimination rules and incorporates anti-abuse protections.

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To err is human, to forgive, regulatory. However, for some common errors, the issues go beyond Voluntary Correction Program VCP or Self-correction Program (SCP). Forgiveness from IRS and DOL may not protect you from lawsuits, employee problems, practical issues and other risks. There may also be situations where non-standard corrections are warranted and accepted by the agencies. Our panelists discuss errors you have probably had to deal with, review the standard corrections and other ways of dealing with them, and the issues you should consider. (For more information on EPCRS see 501)

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With rising interest rates and improving plan funded status, more plan sponsors may be ready to initiate a plan termination. There are steps plan sponsors should take now to prepare for and improve the eventual termination process. And navigating the PBGC and IRS requirements is a challenging 6 – 12 month process that will require coordination among the actuary, legal counsel, investment manager, and plan administrator. Our panel reviews these considerations and the steps involved in a standard termination, with particular attention on the typical pitfalls to avoid and considers PBGC audit experience. A general understanding of the plan termination process is presumed.

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Writing and understanding a new standard is one thing. Implementing it is another. Come hear a panel of experts discuss some of the implementation issues that are surfacing as plans and employer governments start to implement GASB 67 and 68. Bring your own issues and questions to discuss with the panel. (This session is not recorded.)

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Have you ever wished for the opportunity to discuss your problems with a group of peers? This workshop is an open forum on current problems and issues specific to sponsors of small plans. Topics may include PPA, PAA, IRC 401(a)(26), 410(b), 401(a)(4), 401(a)(17), 415 and 401(a)(9) and PBGC funding rules for small plans. (This session is not recorded.)

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The Society of Actuaries’ Retirement Plans Experience Committee (RPEC) is expected to release a new report on their Pension Mortality Study, which it began in 2010. This study includes a comprehensive review of recent mortality experience of uninsured retirement plans in the US. In conjunction with the release of the study, the SOA is expected to publish a new set of retirement plan mortality tables and mortality improvement rates that is the successor to the RP-2000 tables and Scale AA. Presenters at this session discuss recent trends in mortality and mortality improvement and will provide an in-depth review of the new mortality study, and updated mortality tables and mortality improvement rates.

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Plan sponsors continue to look for ways to decrease volatility and risk. New plan design ideas allocate to sponsors and participants differently than traditional defined benefit or traditional defined contribution plans. Presenters will describe specific plans that share risk in innovative ways between the sponsor and participants. Examples include pure variable benefit plans, adjustable benefits with minimum and maximum adjustments, and hopefully new designs that may make you rich in retirement.

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A panel of high ranking officials fields your questions on a number of challenging issues. This is your chance to ask what you've always wanted to know about guidance. This session is not intended to address specific client issues.

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Speakers at this session review the Schedule SB, paying particular attention to changes to the schedule to accommodate recent regulatory and legislative changes. There is also a review of the many attachments that are required, including those that must be provided for all plans and those that are only required for certain types of plans or plans that have made special elections.

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The International Accounting Standards Boards (IASB) issued an amendment to the IAS 19 effective January 1, 2013, that significantly changes international accounting for benefit plans. Now that the new standard has been in effect for over a year, the panelists discuss current topics and lessons learned.

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This is an open forum on current topics of concern to public plan actuaries. Possible topics this year may include the new GASB statements (67 and 68), Moody’s pension liability measurement, funding policies without the ARC and possible new legislation on reporting liabilities. (This session is not recorded.)

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The PBGC operates a mandatory insurance system in which Congress determines the source and amount of most of its revenue. The PBGC deficit has grown to a reported $29.1 billion (update in November). Premiums have increased dramatically. Presenters at this session discuss ideas for changes in the premium structure and comment on the relevance of the reported deficit, including the effects of changing interest rates.

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This session is an opportunity for multiemployer plan actuaries to engage in a discussion of practical issues, problems and experiences encountered in their practices. It can be a more in-depth discussion of topics from the other multiemployer sessions or subjects not covered in those sessions. Come prepare with your list of discussion topics! (This session is not recorded.)

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Are you an in-house actuary? This workshop is for actuaries who work on retirement and other plans sponsored by their employers. Attendees have the opportunity to discuss the special problems and issues they encounter. Note: Attendance at this session should be limited to in-house actuaries. (This session is not recorded.)

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Plan mergers and spinoffs continue to be prevalent in corporate America. However, the rules and regulations are much more complicated when underfunded plans are involved and some requirements are unclear. The panelists discuss the requirements under Section 414(l) related to mergers and spinoffs including:

• Determining asset transfer amounts for spin-offs;
• Determining “special schedules” for mergers;
• Allocation of the funding balances and shortfall amortization bases;
• Government filing requirements; and
• Dealing with the PBGC.

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The Executive Director of the Joint Board for the Enrollment of Actuaries provides an update on Joint Board activities and answer participants' questions regarding regulations, professional, disciplinary, and other topics of interest to EAs. The audience participants are given the opportunity to share their concerns and ideas with the Joint Board.

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The presenters at this session cover assets under PPA, including smoothing methods, used of audited vs. nonaudited assets, hard-to-value assets, and the effects of changes in plan years and spin-offs and mergers on smoothed assets.

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Multiple employer plans can arise due to spin offs, joint ventures and many other corporate transactions. MEPs present unique challenges in funding, non-discrimination, withdrawal liability, 436 restrictions, administration, and accounting calculations. Our panel raises issues and discusses practical solutions.

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Many large companies in the US sponsor Non-qualified Deferred Compensation (NQDC) Plans for at least some of their executives. As more companies shift their qualified pension plan designs from defined benefit (DB) to defined contribution (DC) and cash balance, NQDC Plans are becoming a more important source of retirement income for key employees. As these plans grow, so do their liabilities. And unlike qualified DC plans, these liabilities are unfunded corporate promises and, as such, are having an increasing impact on many companies' financial statements. Historically, actuaries have not been typically involved with valuing these liabilities, but they should be. NQDC liabilities are complex to value, extremely volatile, and difficult to manage. Dealing with NQDC liabilities is particularly challenging when significant corporate events (e.g. mergers, acquisitions, divestitures or bankruptcy) occur. During this session, we explore the nature of NQDC liabilities from an actuarial perspective and discuss traditional and not so traditional ways companies are finding to manage the impact of the NQDC plans on company financial statements and cash flow.

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Speakers at this session cover some of the less common asset options that sponsors might consider. Our experienced panel discusses using illiquid assets and prohibited transaction exemptions.

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Experts predict that the U.S. is facing a national retirement crisis in the coming years as our aging population faces retirement in a world where defined contribution plans, along with Social Security, are the primary retirement income vehicles. The public policy debate on retirement security in the U.S. is going to kick into high gear as more and more people face the tough question of how to structure a financially secure retirement.

Historically, national tax policy has been a primary driver of retirement savings and behavior. Although Ronald Reagan aptly pointed out to the American people that "Social Security has nothing to do with the deficit", retirement programs – including Social Security - come into play as budget debates continue in Washington and across the country.

In this closing session, we listen in as our panel of experts on U.S. retirement issues debate some of the options that have been proposed to improve the financial health of Social Security and options to alleviate the national retirement crisis that is looming on the horizon.

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