The Actuarial Standards Board (ASB) recently announced the adoption of a revision to Actuarial Standards of Practice (ASOP) No. 4, that requires governmental plans to calculate and disclose a market
The Actuarial Standards Board (ASB) recently announced the adoption of a revision to Actuarial Standards of Practice (ASOP) No. 4, that requires governmental plans to calculate and disclose a market valuation of liabilities (MVL) using a “risk-free” discount rate—with all actuarial valuations conducted for funding purposes—effective February 2023.
While organizations have been engaged in the process of restating public plans’ liabilities using an MVL standard for years, the new ASOP 4 MVL calculation will be a number calculated and disclosed by the plan, respectively.
Opponents of the public sector defined benefit (DB) model will likely characterize this new number as an admission by retirement systems of the “real” cost of their plans. Supporters of replacing DB plans with a defined contribution (DC) approach will say the new calculation shows just how underfunded NCTR member systems are—leaving legislators, plan participants and the public confused, at best.
How public plans explain this new number, communicate its actual meaning to various stakeholder groups, and respond to its misuse by opponents will be critical. Join us on Wednesday, March 23 at 3 PM/ET, as Federal Relations Director Leigh Snell and panelists brainstorm this challenge.
• Paul Angelo, Senior Vice President and actuary, The Segal Group
• Julie Underwood, Chief Financial Officer, CalSTRS
• Carolyn Perez, Director of Communications, Texas TRS
NCTR’s webinars are exclusive to NCTR members, only.
(Wednesday) 3:00 pm - 4:00 pm