News & Analysis as of

Actuarial Values

Eversheds Sutherland (US) LLP

NAIC Life and Annuities (A) Committee adopts amendments to Actuarial Guideline 49-A

On February 24th, the NAIC Life Insurance and Annuity (A) Committee (A Committee) adopted amendments to Actuarial Guideline (AG) 49-A to address a concern raised by state insurance regulators regarding the use of...more

Nossaman LLP

Podcast: What Public Retirement Systems Need to Know Now About Changes to Actuarial Standard of Practice No. 4

Nossaman LLP on

On February 15, 2023, changes to Actuarial Standard of Practice (ASOP) No. 4 will be effective, and defined benefit plans will need to comply with these new rules in all actuarial funding valuations with measurement dates...more

Eversheds Sutherland (US) LLP

NAIC Indexed Universal Life Illustration Subgroup solicits comment on options to revise Actuarial Guideline 49-A and to open NAIC...

On October 12th, the NAIC Life Insurance and Annuity (A) Committee’s Indexed Universal Life (IUL) Illustration (A) Subgroup (IUL Subgroup) exposed for comment four options to amend Actuarial Guideline (AG) 49-A to address a...more

Jackson Lewis P.C.

Withdrawal Liability Interest Rate Must Reflect Projected Investment Return, D.C. Circuit Holds

Jackson Lewis P.C. on

Under the Employee Retirement Income Security Act (ERISA), as amended by the Multiemployer Pension Plan Amendments Act (MPPAA), a company incurs withdrawal liability when it withdraws from a multiemployer pension plan....more

Dorsey & Whitney LLP

Actuarial Equivalence Fight Goes to the First Circuit

Dorsey & Whitney LLP on

Yet another battle in the actuarial equivalence fight has just been resolved—and is immediately headed for appellate review. In Belknap v. Partners Healthcare System, Inc., the Plaintiff argued that the annuity payment he...more

Holland & Knight LLP

Court Holds That ERISA Does Not Require Actuarial Equivalence Factors to Be "Reasonable"

Holland & Knight LLP on

The U.S. District Court for the District of Massachusetts has dismissed an Employee Retirement Income Security Act (ERISA) class action lawsuit challenging a retirement plan's use of an outdated mortality table in calculating...more

Jackson Lewis P.C.

District Court Rejects Reasonableness Requirement for “Actuarial Equivalence” Used to Calculate Alternative Annuities

Jackson Lewis P.C. on

On March 4, 2022, the District Court for the District of Massachusetts dismissed, pursuant to Fed. R. Civ. P. 56, ERISA claims brought by a former employee who retired early at the age of 62 and receives retirement benefits...more

Bodman

Sixth Circuit Addresses Actuarial Assumptions Regarding Withdrawal Liability

Bodman on

In Sofco Erectors, Inc. v. Trustees of the Ohio Operating Engineers Pension Fund (“Sofco”) (September, 28, 2021), the Sixth Circuit Court of Appeals issued a long awaited decision regarding the appropriateness of interest...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Sixth Circuit Rules Interest Rate Methodology Selected by Plan Actuary in Withdrawal Liability Calculation Violates ERISA

In a rare victory for employers that participate in multiemployer pension plans, the Sixth Circuit Court of Appeals held that the interest rate memorialized in the Segal Blend actuarial assumption was inappropriate to use in...more

Jackson Lewis P.C.

U.S. Bancorp Defeats Class Certification In Challenge To Early Retirement Benefits

Jackson Lewis P.C. on

The District Court of Minnesota declined to certify a class of pensioners seeking to challenge their plan’s early retirement calculations. ERISA requires early retirement benefits to be actuarially equivalent to what...more

Hodgson Russ LLP

Actuarial Equivalence Lawsuits Update: One Case Against AT&T Dismissed

Hodgson Russ LLP on

We have reported from time to time on the recent wave of actuarial equivalence lawsuits that have been brought against sponsors of defined benefit pension plans. The claims, broadly speaking, allege that factors used to...more

Carlton Fields

ASB Airs Summer Rerun: Seeks Round 2 of ASOP 2 Comments

Carlton Fields on

When last we left the Actuarial Standards Board (ASB), the board was considering comments on the first exposure draft of proposed changes to Actuarial Standard of Practice No. 2 (ASOP 2), now titled “Nonguaranteed Elements...more

Carlton Fields

NAIC Virtual Block Party

Carlton Fields on

The NAIC and the Interstate Insurance Product Regulation Commission (“Compact”) are cooking up various initiatives that will impact life and annuity issuers. Below is the spread of the different issues....more

Tucker Arensberg, P.C.

Federal Court Upholds Actuary’s Use of Discount Rate in Withdrawal Liability Calculation

Tucker Arensberg, P.C. on

In recent years, employers have increasingly brought challenges claiming that it is unreasonable for a multi-employer pension plan’s actuary to calculate withdrawal liability using a rate that is lower than the plan’s...more

Groom Law Group, Chartered

Big Win for Employer in Actuarial Equivalence Case – Class Certification Denied

The U.S. District Court for the Northern District of Texas dealt a major blow to the putative class action Torres v. American Airlines, Inc., finding that the four named plaintiffs are not adequate class representatives for...more

Holland & Knight LLP

The Latest Decisions in Actuarial Equivalent Lawsuits

Holland & Knight LLP on

In an opinion issued in Smith v. Rockwell Automation, Inc., et al., No. 19-C-0505 (E.D. Wis.) on Feb. 10, 2020, U.S. District Judge Lynn Adelman denied Rockwell Automation's motion to dismiss a putative class action complaint...more

Groom Law Group, Chartered

Court Challenges to DB Plan Actuarial Assumptions – One Year Later

Eleven cases have been filed against defined benefit pension plan sponsors and certain fiduciaries alleging that the plan’s assumptions—called “actuarial equivalence factors” or “actuarial equivalence assumptions”— for...more

Proskauer - Employee Benefits & Executive...

Second Circuit Prohibits Retroactive Changes to Withdrawal Liability Interest Rate Assumptions

The Second Circuit Court of Appeals recently issued a withdrawal liability decision of which both multiemployer pension plans and their contributing employers should be aware. Specifically, in National Retirement Fund v. Metz...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

IRS proposes changes to life expectancy tables

People complain a lot about life these days, but one fun fact is that people are living longer than they did just 20 years ago. Thankfully, the Internal revenue Service (IRS) noticed too....more

Hodgson Russ LLP

Actuarial Equivalence Lawsuits Update: Defendants Earn a Win as Pepsi is Granted Motion to Dismiss

Hodgson Russ LLP on

PepsiCo, Inc. (Pepsi) is the sponsor of a defined benefit pension plan. Like several other prominent sponsors of defined benefit pension plans, Pepsi was named as a plaintiff in an actuarial equivalence lawsuit that alleged...more

McDermott Will & Emery

Federal District Court Dismisses Pension Actuarial Equivalence Lawsuit

McDermott Will & Emery on

A federal district court recently handed plan sponsors their first victory in a string of actuarial equivalence lawsuits filed against large defined benefit pension plans. Although the decision is a positive development for...more

Carlton Fields

Mostly Tricks Proposed for ASOP 2

Carlton Fields on

Actuaries and Insurers Take Note - The Actuarial Standards Board (ASB) has exposed for comment significant proposed changes to Actuarial Standard of Practice No. 2, “Nonguaranteed Charges or Benefits for Life Insurance...more

Hodgson Russ LLP

Employee Benefits Development - July 2019

Hodgson Russ LLP on

The Employee Benefits Practice is pleased to present the Employee Benefits Developments Newsletter for the month of July 2019. ...more

Hodgson Russ LLP

Plaintiffs Win Early Battle in New Wave of Pension Litigation Over Actuarial Equivalence

Hodgson Russ LLP on

A number of prominent companies that sponsor defined benefit pension plans are having to defend lawsuits commenced in the past several months that allege that the actuarial assumptions used to determine optional forms of...more

Carlton Fields

Proposed Revisions to ASOP 2 May Impact Your Product Pricing and Litigation Exposure

Carlton Fields on

The Actuarial Standards Board (ASB) exposed wholesale changes to Actuarial Standard of Practice No. 2 - Nonguaranteed Charges or Benefits for Life Insurance Policies and Annuity Contracts (ASOP 2), which has not changed since...more

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