Description: Exploration of sources of volatility in retiree health valuations, noting how volatility arises and might be mitigated, with discussion of valuation parameters more problematic for retiree health benefits than for pensions. Three significant influences on retiree health valuation volatility are covered-- changes in benefit level, fluctuations in cost level, and alterations in eligibility for, or duration of, benefit – and attention focused on the last two. Specific conclusions result in recommendations, which are supported by practical examples contrasting volatile measurement results with those likely from the recommended practices. Theoretical discussion includes health claim variation, health trend usage, financial economics, option pricing, discount rates, and deterministic vs. stochastic modeling.

Description: Response to David Kausch’s comments on the paper.

Description: This article announces the availability and provides an overview of the Study Note for Course P–461U-Valuation of Pension Benefits for Disabled Participants. From Pension Section News, April 1998, Issue No. 36.

Description: ERISA funding requirements for defined benefit pension plans require an asset valuation method which takes reasonable recognition of fair market value. In this article, the author proposes three asset valuation methods in which market values could be averaged to eliminate the detrimental effects of periodic fluctuations in the bond and stock markets.

Description: Overview of a recently published paper that explains how credibility theory can be applied to develop mortality assumptions for defined benefit plans.

Description: These notes are a follow-up to the paper 'Introduction to the Dynamics of Pension Funding' by the same authors and published in Transactions of Society of Actuaries 1976, Vol. 28. The purpose of that paper was to provide an introduction to mathematical principles applicable to pension funding under dynamic conditions of population growth, inflation, and automatic adjustment of benefits. The first note discusses a general contribution formula and a number of special cases and modifications. The second note concerns aggregate cost funding when the actuary uses assumptions about cost factors which differ consistently from cost experience. The final note concerns the variation of the annuity unit under a variable annuity program patterned after the plan employed by the College Retirement Equities Fund [CREF]. From Actuarial Research Clearing House 1981, Vol. 1.

Description: Report on the second in a series of studies conducted jointly by LIMRA International and the SOA Long-Term Care Experience Committee. The study examines longterm care insurance LTCI industry persistency experience by reporting on changes in both voluntary lapse and total termination activity for all participating companies during calendar years 2002 through 2004. Overall, the results indicate that LTCI persistency continues to increase. However, recent increases have occurred on the group side of the business more than the individual side.

Description: This is a study of Pension Benefit Guaranty Corporation (PBGC) mortality experience. The study consists of data furnished by the PBGC for the time period of September 30, 2009 through September 30, 2014. All of the data come from single-employer pension plans taken over by the PBGC in a distress termination. This is the SOA’s first study of PBGC experience and provides another comparison point of retirement plans mortality experience for work performed by pension actuaries.

Description: Six appendices are presented: Study Methodology and Response, Column Names and Data Codes, Listing of Respondents and Reports Received, Experience Study Data, Valuation Report Data, and Investment Data. From A Study of Public Employees Retirement Systems, M-RS96-1.

Description: This panel discussion session reported on the status and content of the Actuarial Standards Board standard dealing with the selection of assumptions. The discussion covers what the effects would be on practitioners.