Method or Assumption

[Effen]

If I used segment rates for the 2008 valuation and the yield curve for the 2009, is that a change in my assumptions or my method?

I am thinking that if I change the lookback month for the segment rates that could be an assumption change, but for some reason I'm thinking that a change to/from segment rates from/to yield curve is a method change.

Is there anything "official" on this?

[Andy the Actuary]

Personal, unofficial vote: Assumption change. IMHO, an actuarial method dictates the manner in which you calculate an asset or liability. Assumptions pertain to best estimates of future experience.

And as Casey would have said, "And you can look it up!"*

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*For the casual baseball fan, the reference is to the erstwhile baseball manager, Casey Stengel, who would more often

than not speak pure gibberish and would complete his outlandish comments by adding "And you can look it up."

[AndyH]

I think this was noted on a slide from the EA conference as "unofficially" a method change.

FWIW, and not for that reason, we are calling it a method change.

[dmb]

If I used segment rates for the 2008 valuation and the yield curve for the 2009, is that a change in my assumptions or my method?

I am thinking that if I change the lookback month for the segment rates that could be an assumption change, but for some reason I'm thinking that a change to/from segment rates from/to yield curve is a method change.

Is there anything "official" on this?

Line 24 asks if a change has been made to the non-prescribed assumptions. I think that would not include the interest rate basis for calculating PPA funding requirement.

We have not released any 2009 Schedules SB yet, but were thinking the change in interest rate basis was not a method change. I suppose we could be wrong.

[My 2 cents]

My vote is for method. And there is blanket IRS approval to establish either basis for 2008, to make a change from one to the other in 2009 and to change to either (a) segment rates based on any of the allowed lookback months in 2010 or (b) to the yield curve as of the single permitted month in 2010. After that, the only change that can be made (without obtaining plan-specific IRS approval) is from segment rates (if in use) to the full yield curve (which is then in place until plan-specific IRS approval is obtained).