ASOP 4 Update

[meep]

For whenever it comes. Now that the CCA/AAA lawsuit is over:

Academy Board/CCA lawsuit

I didn’t realize there was a lawsuit going on, but I guess it’s been lower-drama than the prior lawsuits. From email: After two years of litigation funded by the Conference of Consulting Actuaries (CCA), Judge Michael Mullen of the Circuit Court of Cook County, Illinois, entered summary judgment in the lawsuit in favor of the defendants—the Academy and current and former members of its Board of Directors. Judge Mullen found that the Academy Board had the authority to adopt a September 4, 2018…

Maybe ASOP 4 revisions will be adopted.

Dug up from my archives:
Back in 2014, there was a call for comment on changing pension-related ASOPs:

ASB Comment Letters on Public Pension Funding 2014

I exhorted the masses to come forth and comment!
https://stump.marypat.org/article/86/public-pensions-watch-tell-the-actuaries-what-you-want-to-know

Updates for ASOPs 4, 27, and 35 were developed; the updates for 27 & 35 were adopted last year:

ASB Boxscore, Spring/Summer 2020: ASB Adopts ASOP Nos. 27 and 35 Revisions;...

We’re still waiting on ASOP 4. Last draft I saw was from January 2020:
https://stump.marypat.org/article/1315/revisiting-actuarial-standards-asop-4-has-second-exposure-draft

Anyway, now to go read the last ASB Boxscore to gets some professionalism credits, and to see if there’s any update on ASOP 4.

[meep]

Okay, here we go:

boxscore_fall_winter_2020.pdf

The ASB tentatively plans to review the following drafts during its March 2021 meeting:
• a proposed revision of ASOP No. 4, Measuring Pension Obligations and Determining
Pension Plan Costs or Contributions (third exposure draft from the Pension Committee);

I look forward to the next exposure draft.

FWIW, I just wrote a piece on ASOP 56 (Modeling) for the Modeling Section newsletter, which will be coming out in April. Watch for it! (and get some professionalism credit for reading it!)

[Kenny]

http://www.actuarialstandardsboard.org/email/2021/ActuarialStandardsBoard-aug-9-2021.html

ASB Approves Third Exposure Draft of ASOP No. 4

The Actuarial Standards Board of the American Academy of Actuaries recently approved a third exposure draft of a proposed revision of Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions . The standard provides guidance to actuaries when performing actuarial services with respect to measuring obligations under a defined benefit pension plan and determining periodic costs or actuarially determined contributions for such plans. The standard addresses broader measurement issues, including cost allocation procedures and contribution allocation procedures. The standard also provides guidance for coordinating and integrating all of the elements of an actuarial valuation of a pension plan.

The comment deadline for the third exposure draft is Oct. 15, 2021 . Information on how to submit comments can be found in the exposure draft.