ASB Approves Exposure Draft on Determining Minimum Value and Actuarial Value under the ACA
The ASB recently approved an exposure draft titled Determining Minimum Value and Actuarial Value under the Affordable Care Act. The actuarial standard of practice will apply to actuaries performing professional services with respect to calculating actuarial values and testing minimum value requirements in accordance with the Affordable Care Act and related regulations, specifically for purposes of (1) categorizing individual and small group health insurance plans into metal levels; (2) testing whether large employer-sponsored health insurance plans meet the federal minimum value requirements; or (3) making any required certifications. The comment deadline for the exposure draft is May 1, 2015 and can be viewed under the "Exposure Drafts" tab.
ASB Approves Second Exposure Draft on Modeling
The ASB recently approved a second exposure draft titled Modeling. Changes made to the second exposure draft in response to the comment letters received include clarifying the following: the ASOP's guidance; the guidance regarding the applicability of the modeling guidance; the responsibility of the actuary when the actuary is part of a team; guidance when the actuary is reviewing the modeling work of others; and documentation versus disclosure guidance. The comment deadline for the second exposure draft is March 1, 2015 and can be viewed under the "Exposure Drafts" tab.
ASB Approves New Exposure Draft on Risk
The ASB approved a new exposure draft titled Assessment and Disclosure of Risk Associated with Measuring Pension Obligations and Determining Pension Plan Contributions. The proposed ASOP will provide guidance to actuaries when performing actuarial services with respect to measuring obligations under a pension plan and calculating actuarially determined contributions for such plans, with regard to the assessment and disclosure of the risks inherent in those measurements and determinations. The proposed ASOP will apply to actuaries when performing a funding valuation of a pension plan but will not be applicable to actuarial services performed in connection with other post-employment benefits, such as medical benefits. The comment deadline for the exposure draft is May 29, 2015 and can be viewed under the "Exposure Drafts" tab.
ASB Adopts ASOP No. 35 Revision
The ASB recently adopted a final revision of ASOP No. 35, Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations, during its September meeting. Significant modifications from the current version of the ASOP include making the guidelines for a reasonable assumption consistent with the guidelines contained in ASOP No. 27, Selection of Economic Assumptions for Measuring Pension Obligations, and revising the guidance in the ASOP to require disclosure of rationale for assumption selection. The standard will be effective for any actuarial work product with a measurement date on or after June 30, 2015. Earlier adoption of the standard is encouraged. The final revision of ASOP No. 35 can be viewed under the tab “Current Actuarial Standards of Practice.”
ASB Adopts Revised Version of ASOP No. 6
The ASB recently adopted a revised version of ASOP No. 6, now titled Measuring Retiree Group Benefits Obligations and Determining Retiree Group Benefits Program Periodic Costs or Actuarially Determined Contributions. The revision to ASOP No. 6 provides guidance to actuaries when performing actuarial services with respect to measuring obligations under a retiree group benefits program and determining periodic costs or actuarially determined contributions for such retiree group benefits programs. The standard also provides guidance on assumptions that are specific to retiree group benefits programs and addresses broader measurement issues, cost allocation procedures, and contribution allocation procedures. In addition, the standard provides guidance for coordinating and integrating all of the elements of an actuarial valuation of a retiree group benefits program. The standard will be effective for any actuarial work product with a measurement date on or after March 31, 2015; however, if roll-forward techniques are used in the measurement, the standard is not effective until three years after the last full measurement before March 31, 2015. Earlier adoption of the standard is permitted. The final revised version of ASOP No. 6 can be viewed under the tab “Current Actuarial Standards of Practice.”
ASB to Meet March 3–4, 2015, in Washington
The next regularly scheduled meeting of the ASB will be held March 3–4, 2015, at the Academy offices in Washington, D.C.