Industry News

On July 21, 2020, the Actuarial Standards Board (ASB) announced that it recently adopted revisions of Actuarial Standard of Practice (ASOP) No. 27, Selection of Economic Assumptions for Measuring Pension Obligations, and No. 35, Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations.

ASOP No. 27 provides guidance to actuaries when performing actuarial services that include selecting or providing advice on selecting economic assumptions (i.e., investment return, discount rate, post-retirement benefit increases, inflation, and compensation increases) for measuring obligations under defined benefit pension plans. 

ASOP No. 35 provides guidance to actuaries when performing actuarial services that include selecting or providing advice on selecting demographic and other noneconomic assumptions for measuring obligations under defined benefit pension plans. 

Both of the ASOPs underwent two exposure periods, and the ASB received a combined total of 26 comment letters and 22 comment letters, respectively.  The comment letters received were considered in making the changes included in the revised ASOPs.  Some of the significant changes to ASOP Nos. 27 and 35 consist of clarifying the scopes and disclosure requirements of the ASOPs regarding assumptions not selected by the actuary.  In addition, several sections in both ASOPs were revised for clarity, consistency or readability.

ASOP Nos. 27 and 35 are effective for actuarial reports issued on or after August 1, 2021, and when the measurement date in the actuarial report is on or after August 1, 2021. ​

ASOP No. 27 is available here and ASOP No. 35 is available here.