How much freedom does a plan sponsor have to reduce pension benefits? Our panel explores and explains the various anti-cutback rules, and the exceptions, applicable to different types of defined benefit pension plans in the U.S., and the role actuaries play in determining whether pension benefits may be reduced. For single employer plans, ERISA permits the elimination of various forms of benefits, funding-based limitations, and puts limits on PBGC guarantees. Multiemployer plans may cut back benefits to solve certain funding problems, and are subject to even more limited PBGC “guarantees” (which the PBGC may not even be able to meet). Public employer plans are subject to state constitutional guarantees that run the gamut from protections for future accruals, to no protection at all. The presenters discuss the rules applicable to single employer plans, multiemployer plans, and in a variety of states.

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Attend this perennial favorite for a review of guidance from the past year, with a special focus on important developments that occur shortly before the meeting. The speakers may address rulings, regulations, litigation, and other exciting news. (Repeat of Session 601)

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The panelists discuss methodology and open issues for valuing lump sums under traditional plans for both accounting and funding purposes, including complications stemming from HATFA (Highway and Transportation Funding Act) and from use of bond models for setting discount rates under US GAAP.

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Since DC plans are now the primary retirement plan for many employees, employers are finding creative ways to make sure participants get the most out of these plans. Presenters discuss new designs and features that improve both the accumulation of assets and the management of drawdowns to help DC participants make their retirement savings last a lifetime.

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The Multiemployer Pension Reform Act of 2014 changed how mergers and partitions now occur. Speakers cover the terms and conditions, as modified by the Multiemployer Pension Reform Act of 2014 that apply to multiemployer plan mergers and partitions. Viewpoints of both the PBGC and the practitioner are included.

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Small plans can be tricky. Lawmakers and regulators create pitfalls to designs. The presentation should help you navigate those gotchas before they attack your small plans. The speakers discuss issues based upon their practical experience.

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GASB 67 and 68 are now implemented. New GASB statements 73, 74, and 75 are about to apply. Drawing upon the experience with GASB 67 and 68, presenters cover the highlights of the new statements and potential issues in implementation. In addition, panelists review the pertinent issues in implementing GASB 67 and 68.

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As plan sponsors continue to look at how they share risk with their employees, qualified variable annuity plans have experienced a resurgence in recent years. These plans offer participants lifetime income while mitigating plan sponsors’ exposure to the volatility of investment and interest rate risk. Hybrid plan regulations provide guidance on the design of various aspects of these plans, but many questions still remain, particularly for those programs that incorporate some newer and innovative features compared to the traditional variable annuity plans. A panel of experts discusses plan design and valuation issues unique to these plans, including areas where actuarial theory and regulatory guidance may diverge.

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The American Academy of Actuaries’ Pension Cost Work Group released an Issue Brief in August 2015 titled, “Alternatives for Pension Cost Recognition – Issues and Implications.” The presenters review different applications of yield curve rates in determining the elements of pension accounting cost, along with the theoretical rationales and implications of using them.

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The speakers review recent court decisions affecting defined benefit plans and pension actuaries.

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Corporate plans finally have some clarity around market rates of return and other issues. Now the real work begins -- helping your clients bring their plan design into compliance by the 2017 effective date and figuring out how to best accomplish their goals. The speakers focus on larger plans that have different issues and concerns than small and self-employed plans (covered in Session 505).

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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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The Solutions not Bailouts report from the National Coordinating Committee for Multiemployer Plans included the concept of a Target Benefit plan to alleviate some of the issues related to a defined benefit plan in the multiemployer setting. This design has now become known as the Composite Plan, and proposed legislation is under development that will start the process of bringing this concept to life. This session covers the characteristics of such a plan.

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We all issue actuarial reports, but do we all know what should (and must) be in them? With the recent changes in communication and disclosure rules in the ASOPs, it can be easy to miss a step. The presenters have planned a practical session to help you make sure your actuarial reports comply with professionalism standards and the various ASOP requirements. You can also learn about some of the common pitfalls to avoid when issuing an actuarial communication.

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There have been many recent discussions within the actuarial community on appropriate disclosures for public sector pension plans. There are also many users of actuarial disclosure information for public plans. As a result, there are several potential new actuarial disclosures in addition to new required accounting standards for public plans. The speakers at this session focus on the view of the plans and the plan sponsors trying to balance between providing a reasonably limited amount of useful information and providing enough necessary detail to paint the full picture.

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Mergers and acquisitions are on the rebound. Sooner or later one of your clients may be a buyer or be bought. Even if there are no immediate plan mergers or spinoffs almost every M&A deal generates significant issues for retirement benefits. Don’t be caught off guard. Help your client anticipate and address key issues such as:

• Nondiscrimination testing;
• Changes in the plan sponsor;
• Business combinations without plan movement;
• PBGC and early warning program/reportable event obligations;
• Unpredictable Contingent Event Benefits (UCEBs);
• Benefit harmonization and plan re-design;
• Strategic plan mergers versus potential drawbacks;
• Accounting issues and alternatives; and
• Negotiation strategies.

Speakers share their experiences and cover how these issues can be discussed with your client from an actuarial perspective.

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So your client wants to settle their pension liabilities. The presenters on this panel examine the decision considerations between using lump sum cashouts or annuities. They discuss anti-selection, legal and compliance issues. Also, the panel looks at lump sum cashout implementation steps, communications strategies, and recent plan sponsor experience.

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Since the SOA introduced the RP2014 mortality tables, the immediate focus has been measuring the impacts on accounting valuations. However, we know the IRS is studying the new tables and is likely to require Section 417(e) lump sum basis changes for 2017 plan years. What should we be telling participants now? What other changes should plan sponsors consider? Should we also reevaluate relative value disclosures? Is the prior analysis still valid and is the participant disclosure appropriate? What about the plan’s actuarial equivalence basis? This panel explores these implications for actuaries and plan sponsors.

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Historically, our clients have focused significant attention on investing in the physical wellness of their employees. Some have started extending this concept to financial wellness, including whether their employees are appropriately preparing for retirement. Join the panel to hear how we can help our clients in this new area to help improve employees’ retirement readiness.

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In this highly interactive session, panelists and audience members debate solutions to difficult ethical situations faced by actuaries in their day–to–day practice, including conflicts of interest, disagreements among actuaries, and working with difficult clients.

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After years of performing valuations to measure the financial condition of a multiemployer plan as of a point in time, recent legislation under PPA and MPRA requires plans to focus on long-term funding by also requiring projections of various measurements of a plan’s financial conditions many years into the future. Projections are also integral to plans evaluating proposed changes or undergoing special measures such as a merger or exercising benefit suspensions and partitions newly available under MPRA. Panelists review the difference in assumptions that are needed for projections versus a point-in-time measurement and reviews the difference between deterministic and stochastic projections.

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Through the use of real-life case studies, learn how to ensure compliance in plan design and operation. In this session, a variety of issues that arise during the course of a cash balance plan are considered. Interest crediting rates, changes in plan demographics and volume submitter language are just a few topics to be discussed.

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The California Public Employees Retirement System (CalPERS) recently outlined a risk reduction investment strategy. Other plans may have considered or implemented different approaches. The speakers discuss the actuary’s role in investment or other risk management strategies in use in or applicable to public sector retirement systems.

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Pension “de-risking” activities continue to be in the forefront of many plan sponsors’ minds. These activities most often include lump sum offers to selected plan participants or the purchase of insured annuity contracts to relieve the sponsor of its future benefit obligation. However, most of these transactions don’t actually eliminate risk but rather transfer that risk to another party. During this session, panelists explore the perspectives of the various stakeholders to the pension risk transfer process – company owners and shareholders, plan participants, pension plan regulators, and plan fiduciaries.

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Why do auditors ask those strange questions? The presenters help actuaries understand the reasons behind the questions. The roles of the preparing and reviewing actuaries are discussed, as well as common areas where further discussions are required. The panelists also discuss the recent Public Company Accounting Oversight Board (PCAOB) Staff Consultation Paper 2015-01, “The Auditor’s Use of the Work of Specialists,” the DOL’s recent study “Assessing the Quality of Employee Benefit Plan Audits” and the 2011 Academy Practice Note, “Working with Pension Plan Auditors.”

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Over the last several years and continuing apace, many of the ASOPs that govern our work have been updated or are currently being updated. The speakers at this session cover how recently effective ASOPs (4, 6, 27 and 35) have affected how we do our work, and the likely effects of ASOPs taking effect in 2016 and Exposure Drafts likely to take effect thereafter. Upcoming new or revised ASOPs that may be discussed include Modeling, ASOP 38 (Catastrophe Modeling for All Practice Areas), ASOP 21 (Responding to or Assisting Auditors or Examiners in Connection with Financial Audits, Financial Reviews, and Financial Examinations), ASOP 23 (Data Quality), Pension Risk ASOP, and ASOP 34 (Actuarial Practice Concerning Retirement Plan Benefits in Domestic Relations Actions).

In addition, the panelists cover the discussions at the July 2015 ASB public hearing on public plan funding issues and any developments stemming from that hearing.

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Experienced practitioners involved in developing the PBGC Blue Book questions lead a review of the 2016 Q&A. In addition, while the Gray Book is no longer being produced, questions about Internal Revenue Code issues were collected recently, and these questions were reviewed by the group of practitioners involved in developing the Gray Book in past years. Our presenters discuss these questions and potential responses.

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After the last several years, actuaries and plan sponsors may be weary of discussing mortality and mortality improvement. However, new information emerges every year, plus there are significant longevity implications that are only beginning to be addressed. Presenters focus on practical aspects of setting mortality assumptions, such as:

• Published mortality information since RP-2014 (SSA,CMI,CDC,CMS);
• Generational mortality in plan administration;
• Variations observed by plan or industry; and
• Auditor perspectives on mortality assumptions.

Content may be adjusted to reflect any new guidance we receive from the IRS on funding and section 417(e).

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There are steps plan sponsors need to take now to prepare for and improve the eventual termination process. Navigating the PBGC and IRS requirements is a challenging 6-12 month process that requires coordination among the actuary, legal counsel, investment manager, and plan administrator. Our panel reviews the actuary’s role in a standard plan termination, with particular attention on the typical pitfalls to avoid and PBGC audit experience.

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Speakers at this introductory session 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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The IRS has issued final regulations under section 430 regarding the determination of the minimum required contribution for single-employer pension plans. A panel of experts covers the important provisions of the new regulations as they impact small plans.

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In this highly interactive session, presenters and audience members debate solutions to difficult ethical situations faced by public plan actuaries in their day-to-day practice.

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A lot of time is spent worrying about limits placed on our professional judgment by outside bodies – IRS, FASB, PBGC, etc. If you’re looking for an overview of the ASB’s standards affecting pension actuaries issued by our profession, this session is for you! Any new standards or exposure drafts issued during the year are included; however, additional details are discussed in Session 002.

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The IRS has announced that the determination letter (DL) program is changing. In the future, the IRS intends to issue a DL only when a plan is started and ended, or in other yet to be determined circumstances. Presenters review the implications for plans and their sponsors in a variety of circumstances, including mergers and acquisitions, IRS plan audits, and even the personal bankruptcy of plan participants.

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When the ASB released the revised ASOP No. 27 in late 2013, they provided guidance in setting a forward-looking investment return assumption that encourages an actuary to consider the implications of using an arithmetic return and a geometric return. While actuaries could define the difference between an arithmetic and geometric average, do we understand the implications of using one or the other when setting future investment return assumptions?

To aid in actuaries’ understanding, the American Academy of Actuaries developed a Practice Note providing background information and discussing the complex issues involved in making this evaluation to aid actuaries in selecting an appropriate assumption in compliance with ASOP No. 27. Our speakers discuss the technical aspects of evaluating arithmetic and geometric return assumptions and important considerations in selecting the appropriate assumption for the intended measurement.

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In this highly interactive session, panelists and audience members debate solutions to difficult ethical situations faced by actuaries in their day-to-day practice. The presenters at this session cover different case studies than are covered in Session 303 “Ethics.”

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Panelists at this session discuss current topics that impact accounting under ASC 715, ASC 960 and IAS 19.

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How much is too much? The speakers at this session take an in-depth look at the deduction limits for DB plans and combo DB/DC plans. Topics may include the calculation of the maximum deductible contribution under 404, adjustments for amendments affecting HCEs, PBGC covered plans, and non-PBGC covered plans.

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Panelists at this session review the mechanics of 415 and special rules for public sector plans. Section 415 calculations in the public sector have different treatment for certain public safety employees, issues surrounding COLAs and may have hidden surprises in early retirement incentives for plans that otherwise may not have 415 concerns.

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The panelists discuss the most commonly overlooked rules and tricky areas in nondiscrimination testing. Topics may include changes in controlled group, determination of HCEs, QSLOBs, the three-year testing cycle, snapshot testing, BRFs, contributory plans, offset plans and closed plans.

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This is an opportunity for multiemployer actuaries to engage with a panel of PBGC representatives to discuss a variety of issues affecting multiemployer plans. Topics expected to be covered include PBGC research projects and financial projections regarding the multiemployer guarantee program as well as final, proposed and potential regulations on partitions, mergers, financial assistance, and withdrawal liability. There is plenty of time for questions from the audience.

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Attend this perennial favorite for a review of guidance from the past year, with a special focus on important developments that occur shortly before the meeting. The speakers may address rulings, regulations, litigation, and other exciting news. (Repeat of Session 101)

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Pension and other retirement benefit valuations require actuaries to set many different assumptions. Often this involves reviewing plan or employer experience that may not be 100% credible. How should the actuary decide whether specific data is fully credible, partially credible, or perhaps totally irrelevant? If data is partially credible, how can it be combined with other sources of information? The speakers at this session explore through examples the theory and methods for assessing the credibility of experience data, and, if appropriate, how to adjust for partial credibility. Available resources, including ASOP 25 and the Academy Mortality Practice Note, are highlighted and applied to assumptions such as mortality, retirement and turnover, as well as non-demographic rates like expected return.

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Over the past few years, PBGC has been actively updating the rules and guidelines for reporting plan and plan sponsor information. As they continue to monitor risks to the private pension insurance system, they are looking for additional information from sponsors. At this session, you may learn about the events that trigger reporting, including 4062(e) and 4010, and how to help the plan sponsors you work with comply with those reporting rules.

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First, there was the concept of benefit suspensions as described in the Multiemployer Pension Reform Act of 2014. Then there were proposed regulations and interim guidance, followed by comments, hearings to culminate in final guidance for Trustees choosing to implement benefit suspensions to save troubled multiemployer plans. The presenters at this session review the current state of guidance issued on this topic by the time of the meeting.

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Speakers at this session take an in-depth look at calculating the limitations under Code Section 415 on benefits provided by defined benefit pension plans with an emphasis on Multiple Annuity Starting Dates (MASDs). Topics may include the calculation of the limitations as they pertain to lump sums and other forms of distributions, and adjustments to benefit limitations for annuity starting dates before age 62 and after age 65. Our panelists assume the audience is familiar with the basic rules of section 415 for defined benefit plans.

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In July 2014, the Actuarial Standards Board (ASB) issued a Request for Comments on issues regarding actuarial practice for public pension plans, including whether additional guidance is needed, whether there should be separate Actuarial Standards of Practice (ASOPs) for these plans, and whether the additional guidance should also apply to non-public sector plans. In July 2015, the ASB held a public hearing on the subject. Speakers at this session provide a summary of the responses and comments received by the ASB and an update on where the process currently stands.

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The Chair and Executive Director of the Joint Board for Enrollment of Actuaries provide an update on Joint Board activities and answer participants' questions regarding regulations, the re-enrollment process, professional, disciplinary, and other topics of interest to EAs. Participants are given the opportunity to share their concerns and ideas with the Joint Board representatives.

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As workforces age, employers more frequently face age-related discrimination issues in managing their employee benefit programs. While the Supreme Court recognizes certain natural correlations between age and other legitimate factors affecting eligibility and benefits within employer-sponsored plans, the Age Discrimination in Employment Act (ADEA) can still create pitfalls for plan sponsors who don’t carefully consider the implications on these programs. Employers must be mindful of the difference between legitimate age-based criteria and those that run afoul of the law. During this session, our speakers analyze issues related to retirement plans, early retirement incentive programs, severance plans, and health and welfare benefit plans that may cause problems for employers who fail to adequately consider the consequences of the age discrimination laws.

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A panel of high-ranking officials and experienced practitioners field 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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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. Counter intuitively, they are also often of longer duration than defined benefit liabilities. In this session, the presenters discuss current trends in plan design as well as explore the nature of NQDC liabilities from an actuarial perspective discussing 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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The PBGC feels like the agency is missing several hundred underfunded defined benefit plans that they would like to review. Is your plan one of them? The PBGC issued proposed amendments to the regulations under ERISA section 4010, which requires defined benefit plan sponsors to report financial and actuarial information to the PBGC in certain circumstances. The panelists cover when is a filing required, what waivers apply, and how would the proposed regulations change that. They also review the basics of 4010 filings: What information must be filed? How do you calculate the liabilities? How does electronic filing work?

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During this session, there is an opportunity for multiemployer plan actuaries to engage in a discussion of practical issues, problems or 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 prepared with your own list of topics!

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In certain situations, lump sum distributions from DB plans may not be fully available, either because of 436 restrictions or under the top-25 limitations. The speakers at this session address issues regarding 101(j) notices, calculations of the 50% lump sum rule for restricted plans as well as how to determine top-25 restricted HCEs, the amount restricted, and alternatives for payment to participants.

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Many pension actuaries primarily associate the Society of Actuaries (SOA) with tough exams and mortality tables, but there is also a regular pipeline of research projects underway that have relevance to pension actuaries. These projects span a range of topics, from those that support current practice to those that cover emerging areas. The presenters provide an overview of several recently completed research projects representing the spectrum of SOA-sponsored retirement research. Likely topics include: multi-employer plan stress metrics, corporate pension risk management, designing better retirement income options in DC plans, cataloging pension assumptions and methods, and individual retirees views on managing risk in retirement.

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Representatives from the Department of Labor provide an overview of recent interpretive and regulatory guidance. Among the topics that they may address are:

• Annual reporting (e.g., Form 5500) update;
• EBSA Report – Assessing the Quality of Employee Benefit Plan Audits;
• Disability claims procedure proposed regulations;
• Annual funding notice update;
• Adjustment of ERISA penalties for inflation; and
• ERISA Advisory Council’s proposed model notices to DOL.

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2015 brought changes to the Form 5500 filing. Speakers discuss the many attachments that are required (including the new SUP [Supplemental Pension Plan] attachment), review the Schedule SB, and discuss the new filing deadlines.

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The panelists discuss new developments and key decision points and issues for employers under the Affordable Care Act. Topics discussed may include the latest guidance, effects on benefit costs and delivery mechanisms, trends in employer responses, differences in the effects on small vs. large employers, and exchange implementation issues. The presenters also discuss effects on valuations of retiree medical plans.

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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.

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Want to discuss issues with your peers? This is an open forum on current problems and issues specific to small plans. Topics may include PPA, MAP-21, HATFA, IRC 401(a)(26), 410(b), 401(a)(4), 401(a)(17), 415, and 401(a)(9), and PBGC issues for small plans.

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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, funding policies in practice, and risk disclosures.

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ERISA employee benefit plan fiduciaries often serve in many roles within their organization, not all of which fall under the umbrella of their fiduciary responsibility. The line between fiduciary and non-fiduciary activities and decisions can get blurry at times. As actuaries consulting with and advising plan fiduciaries, we too must deal with understanding where the line falls between fiduciary and non-fiduciary functions – not only to advise our clients who may wear multiple hats, but to avoid crossing the line ourselves.

Today’s panelists review the ERISA fiduciary roles and responsibilities by sharing case studies and the outcomes of recent court cases addressing the basic fiduciary duties, including:

• Loyalty;
• Prudence;
• Diversification;
• Compliance with plan terms;
• Disclosure; and
• Monitoring.

Topics covered through these case studies and court rulings may include pension risk transfer transactions and participant disclosures, monitoring and payment of fees from plan assets, selection and monitoring of plan investments and service providers, the functional fiduciary test, and the DOL (proposed) fiduciary regulations.

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