When patterns of actuarial gains or losses arise or other factors emerge that cause the actuary to have concerns that one or more of the actuarial methods or assumptions may no longer be appropriate, the actuary may recommend specific changes in actuarial assumptions for future actuarial valuations. In addition, it is common for the actuary to periodically undertake a comprehensive experience analysis to analyze the actuarial methods and assumptions employed in the actuarial valuation. Such an experience analysis usually entails an analysis of recent actual experience and emerging trends, culminating with recommendations for any changes in actuarial assumptions in a formal report. Sometimes, the actuary has an agreement with his or her client, or is required by statutes or other rules, to perform an experience analysis study periodically (e.g., every 3 years).

In this session, the speakers involved with both public and private sector plans will discuss these kinds of actuarial assumption and experience studies, including how the studies are initiated, how experience is analyzed, what kind of input is sought from the client, what trends they have seen in recent studies, how the results are presented, how to resolve client resistance to changes, and other observations on the process.

Speakers