ASB Approves Exposure Draft on Medicaid
The ASB recently approved the exposure draft, Medicaid Managed-Care Capitation Rate Development and Certification. The proposed ASOP will provide guidance to actuaries when performing professional services related to Medicaid and Children's Health Insurance Program (CHIP or Title XXI) managed-care capitation rates, including a certification on behalf of a state to meet the requirements of 42 CFR 438.6(c).The comment deadline for the exposure draft, which can be viewed on the ASB website under the tab "Exposure Drafts," is May 15, 2014.
ASB Adopts an ASOP No. 48
The ASB also recently adopted a new ASOP, Life Settlements Mortality. The new ASOP No. 48 provides guidance to actuaries performing professional services, when reporting on or evaluating mortality experience with respect to life settlements or when developing, analyzing, or using mortality assumptions with respect to life settlements. The effective date for ASOP No. 48 is April 30, 2014. The final version can be viewed under the tab "Current Actuarial Standards of Practice."
ASB Adopts Revised Version of ASOP No. 25
The ASB adopted a revised version of ASOP No. 25, Credibility Procedures. The first exposure draft of the revised ASOP was issued in September 2012 and received 20 comment letters. A second exposure draft issued in June 2013 received nine comment letters. In addition to clarifying language in several sections, a clarifying change was made to the wording of the scope section to keep it appropriately focused. A summary of substantive issues can be found in appendix 2. The effective date for the revised ASOP No. 25 is May 1, 2014. The final version can be viewed under the tab "Current Actuarial Standards of Practice."
ASB Adopts Revised Version of ASOP No. 4
The ASB recently adopted a revised version of ASOP No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions. Key changes from the current standard include modifications to language pertaining to disclosure of funded status; disclosure of rationale for changes in cost or contribution allocation procedure; assessment of contribution allocation procedure or funding policy; prescribed assumptions or methods; and plan provisions that are difficult to measure. The adopted ASOP No. 4 was exposed twice between January 2012 and May 2013, generating a total of 30 comments. ASOP No. 4 will be effective for any work product with a measurement date on or after December 31, 2014. The final version can be viewed under the tab “Current Actuarial Standards of Practice.”
ASB Adopts Revised Version of ASOP No. 27
The ASB recently adopted a revised version of ASOP No. 27, Selection of Economic Assumptions for Measuring Pension Obligations. The second exposure draft of ASOP No. 27 was issued in January 2012 and received fifteen comment letters. As a result, various changes were made to the final standard in response to those comments including revising the section on Adverse Deviation or Other Valuation Issues to note that an actuary may determine that it is appropriate to adjust the economic assumptions when valuing plan provisions that are difficult to measure, as discussed in ASOP No. 4; and revising the Assumptions Used section to require that each significant assumption be disclosed. This standard will be effective for any actuarial work product with a measurement date on or after September 30, 2014.
ASB Approves Exposure Draft of Proposed ASOP No. 35 Revision
The ASB approved an exposure draft of a revision of ASOP No. 35, Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations. In September 2010, the ASB issued a revised ASOP No. 35, which was revised again in May 2011 for deviation language. With the September 2010 release of ASOP No. 35, the ASB noted that there were sections of ASOP No. 35 that would need to be reviewed for consistency with ASOP No. 27 once that standard was revised. Now that ASOP No. 27 is revised, the ASB is moving forward with changes to ASOP No. 35. Some key changes to the proposed revision of ASOP No. 35 include better clarifying the language regarding the disclosure of rationale behind selected assumptions; making the guidelines for a reasonable assumption consistent with the guidelines contained in ASOP No. 27; and including language to acknowledge that a range of reasonable assumptions is possible. The comment deadline is January 31, 2014.
ASB to Meet March 11–12, 2014, in Washington
The next regularly scheduled meeting of the ASB will be held March 11–12, 2014, at the Academy offices in Washington, D.C.