Academy Kicks Off Aging Securely Initiative
The Academy hosted an “Aging Securely” forum on Oct. 23 on Capitol Hill in Washington that covered a variety of topics including lifetime income, Social Security, Medicare, and pension issues, and introduced the Academy’s Aging Securely initiative. Academy President-elect Tom Wildsmith laid out the scope of the forum, which included financial and health security, and the sustainability of programs and policies that help older Americans.
Academy Hosts Annual Meeting and Public Policy Forum
The Academy held its Annual Meeting and Public Policy Forum in Washington Nov. 12–13. Gene Dodaro, comptroller general of the United States and head of the Government Accountability Office, was a keynote speaker who talked about the importance and sustainability of government programs. There also were breakout sessions on lifetime income challenges, public plan funding and risk disclosures, and the Multiemployer Pension Reform Act. For attendees, slides from most sessions can be accessed here.
Pension Cost Webinar Looks at Cost Recognition
The Academy held a webinar on Nov. 10 on “Alternatives for Pension Cost Recognition,” where panelists gave an overview of an area of emerging practice to inform actuaries and others about alternative pension accounting methodologies. The webinar reviewed applications of yield curve rates in determining the elements of pension accounting cost, along with the theoretical rationales and implications of using them. It was based on the issue brief, Alternatives for Pension Cost Recognition – Issues and Implications, which was released by the Pension Committee and Pension Accounting Committee in August.
Task Force Releases Issue Briefs on Lifetime Income Issues
The Lifetime Income Risk Joint Task Force in October released three issue briefs in the Risky Business series: one explores financial literacy and education for prospective retirees; another provides actuarial insights regarding lifetime income planning; and a third examines risk sharing by retirees. The task force also released an issue brief that explains general retirement planning considerations, and another designed to provide a high-level perspective on key aspects related to lifetime income.
Academy Releases New Social Security Game
The Academy unveiled its new Social Security Game in October that makes it easier for general audiences to explore options for Social Security reform and their impacts on the program’s long-term solvency. People playing the game can learn about common Social Security myths and examine options for reform to see how changes will affect younger workers, retirees, and the program’s overall long-term sustainability.
Academy Testifies at Treasury Hearing
Eli Greenblum, vice president for pension issues, represented the Pension Practice Council (PPC) at a Sept. 10 Treasury Department hearing in Washington regarding suspension of benefits under the Multiemployer Pension Reform Act of 2014. He asked federal agency representatives to consider whether some items required in the proposed IRS regulations might be unnecessary for determining whether an application should be approved, offered suggestions on annual plan sponsor determinations that a proposed suspension is “not materially in excess of the level necessary to avoid insolvency,” discussed reasonable actuarial assumptions, and voiced concern about the timing of the initial value of plan assets for projections. The testimony reflected the PPC and Multiemployer Subcommittee’s position on these issues, based on an Aug. 18 comment letter.
REGULATORY MATTERS
Intersector Notes Released
The Intersector Group released in December the notes of its September meeting with the Treasury Department and IRS, and the notes of its September meeting with the Pension Benefit Guaranty Corporation.
Comments to Treasury and IRS on QLAC Advantages
The PPC submitted comments in November to the Treasury Department and Internal Revenue Service on the final regulations concerning Qualified Longevity Annuity Contracts (QLACs) and their advantages. The PPC noted in the comments that more Americans could benefit from this type of longevity annuity, especially if the QLACs provide variable and indexed annuities.
Comments to PBGC on§4010Reporting Requirements
The Pension Committee (PC) sent comments to the Pension Benefit Guaranty Corporation (PBGC) in September regarding the proposed changes to the §4010 reporting requirements. The PC noted that the 500-participant threshold is too low (if a count approach is to be used at all) to appropriately focus reporting on those plans that pose a substantial risk and exposure. The PC also stated that it does not believe that the $15 million underfunding threshold should be completely eliminated for larger plans.
IN THE NEWS
Pension Reform
A widely published Associated Press story on the Kansas Public Employees Retirement System cited the Academy’s issue brief, The 80% Pension Funding Standard Myth, in questioning the state’s strategy to set an 80 percent funding goal. The story ran in multiple U.S. and international news outlets, including the Washington Times and New Zealand Herald.
Taxnotes.com reported on the Academy’s recent comments to the IRS and Treasury Department regarding proposed regulations on suspensions of benefits under the Multiemployer Pension Reform Act in a subscriber-only story, “Chamber of Commerce Seeks Clarity in Regs on Suspension of Benefits.”
Social Security
The Academy’s new Social Security Game was highlighted as part of the weekly “Best of the Web” roundup in the Upshot column of The New York Times for the week of Nov. 20.
COMING EVENTS
Enrolled Actuaries Meeting
Registration is now open for the Enrolled Actuaries Meeting on April 10–13, 2016, at the Marriott Wardman Park Hotel in Washington. The meeting will hold sessions in several formats, covering a wide range of topics and issues relevant to Enrolled Actuaries and other pension professionals. Register today or get more information here.
If you have any questions, suggestions, or comments about Retirement Account, please contact Matthew Mulling, the Academy’s pension policy analyst, at Mulling@actuary.org .
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