News Scan

Actuarial Standards Board Announces Adoption of ASOP on Pension Risk

On October 26, 2017, the Actuarial Standards Board (ASB) of the American Academy of Actuaries announced that the ASB recently adopted Actuarial Standard of Practice (ASOP) No. 51, Assessment and Disclosure of Risk Associated with Measuring Pension Obligations and Determining Pension Plan Contributions. The new standard will be effective for any actuarial work product with…

Society of Actuaries Releases Mortality Improvement Scale MP-2017

On October 20, 2017, the Retirement Plans Experience Committee (RPEC) of the Society of Actuaries (SOA) issued its Mortality Improvement Scale MP-2017 Report.  The report provides the new MP-2017 Mortality Improvement Scale, which is an annual updated mortality improvement scale for pension plans.  MP-2017 reflects a 1.2% increase in age-adjusted U.S. population mortality rates between…

GFOA Approves Best Practice for Investment Policies for DB Plans

On October 5, 2017, the Executive Board of the Government Finance Officers Association (GFOA) approved a new Best Practice (BP) titled, Investment Polices for Defined Benefit Plans. The GFOA regularly develops BPs to serve as guidance on selected topics for state and local governments.  It also develops advisories to caution against certain practices. In the…

CRR Reports on the Impact of Out-of-Pocket Medical Spending on Retirement Income

In October 2017, the Center for Retirement Research (CRR) at Boston College released its working paper, How Much Does Out-of-Pocket Medical Spending Eat Away at Retirement Income? As discussed in the report, Medicare’s high out-of-pocket (OOP) costs greatly reduce the adequacy of retirement income from Social Security benefits and other sources. The research project uses…