ASOP 4 and the “Low-Default-Risk Obligation Measure”

The Actuarial Standards Board (ASB) has proposed a new version of its controversial proposal requiring the calculation and disclosure of an investment risk “defeasement” measure whenever an actuary performs a funding valuation. Referred to as a “solvency value,” the new number was designed to represent an estimate of the cost, as of the valuation date, to defease all liabilities accrued under the plan in the marketplace.

The requirement remains. But it has been renamed the “Low-Default-Risk Obligation Measure,” and greater flexibility provided regarding what risk-free measures may be used to determine it. But do the proposed changes amount to a significant revision of the proposal? Do they still present the same concerns for governmental plans as the original 2018 proposal did?

Finally, is this major change a “done deal?”

These are important questions, and the ultimate answers to them will be very significant to the public pension community going forward. Therefore, be sure to register for NCTR’s Members-only webinar on the latest proposed revisions to ASOP 4, to be held Thursday, March 19, at 3:00 PM ET. Join Leigh Snell. NCTR’s Director of Federal Relations, as he seeks answers from his expert panelists:

• Paul Angelo, Senior Vice President and Actuary, Segal Consulting
• David Driscoll, Principal and Consulting Actuary, Buck
• Larry Langer, Principal and Consulting Actuary. CavMac Consulting
• Brian Murphy, Senior Consultant, GRS

REGISTER TODAY!