The Actuarial Standards Board of the American Academy of Actuaries recently approved an exposure draft of a proposed revision of Actuarial Standard of Practice (ASOP) No. 6, Measuring Retiree Group Benefits Obligations and Determining Retiree Group Benefits Program Periodic Costs or Actuarially Determined Contributions.
The standard applies to actuaries when performing actuarial services with respect to measuring obligations, determining periodic costs or actuarially determined contributions, or setting assumptions for retiree group benefits programs, including development of a cost allocation procedure used to determine periodic costs; development of a contribution allocation procedure used to determine actuarially determined contributions; determination as to the types and levels of benefits supportable by specified cost or contribution levels; and projection of obligations, periodic costs or actuarially determined contributions, and other related measurements such as cash flow projections and funded status projections.
A notable change in the proposed revision includes expanding the scope to acknowledge that the performance of actuarial services for retiree group benefit programs may require actuaries from more than one practice area, in which case, all references to actuary collectively apply to collaborating actuaries, and to clarify the application of the standard when the actuary selects an output smoothing method and when an assumption or method is not selected by the actuary.
The comment deadline is May 15, 2026. Information on how to submit comments can be found in the draft.
