Industry News

In December 2019, the Actuarial Standards Board (ASB) approved the second exposure draft of a proposed revision of Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions.

According to the ASB, “This actuarial standard of practice [ASOP] 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.  Other [ASOPs] address actuarial assumptions and asset valuation methods.  This standard addresses broader measurement issues, including cost allocation procedures and contribution allocation procedures.  This standard provides guidance for coordinating and integrating all of the elements of an actuarial valuation of a pension plan.”

In March 2018, the first exposure draft of ASOP No. 4 was issued, and the ASB received 67 comment letters.  The comment letters received were considered in making the changes included in the second exposure draft.  The comment deadline for the second exposure draft is April 30, 2020. 

The second exposure draft for ASOP No. 4 is available here.