Actuarial review of benefit calculation

[Guest Franklin Evans]

I'm looking for regulatory or article references. Any case law references would be ideal.

The basic situation is in an automated system that produces accrued benefit calculations that could be used to initiate actual benefit payments, but without any review by an actuary or his/her designated representative (qualified administrator, etc.). The system is designed to automatically find such benefit calculations according to flags set in the database records for the calculation.

Many thanks,

Franklin

[MGB]

I am not sure what you are looking for or referring to.

There are no calculations of benefits that EVER need review by an actuary (by the way, I am one).

The responsibility of accrued benefit calculations are purely under the auspices of the plan administrator. Any automated system would fall under their review, not the actuary.

An actuary is sometimes asked to provide assistance, but they are only providing that as a clerical service to the plan administrator. The plan administrator still has the responsibility of the accuracy and appropriateness of any calculation done.

[Guest Franklin Evans]

MGB, thanks for the actuary's point of view. I've been away from direct admin of plans long enough to have needed that reminder.

I will modify my description a bit. The plan administrator bears the responsibility for the accuracy of the benefit calculation, and thus the distribution amount to the participant/retiree/beneficiary. If this amount is found to be incorrect, and the amount is found to have been calculated and used without human review of any kind, what are the ramifications? By the way, I don't mean the public relations aspect (though that may be significant).

I was originally implying that the (enrolled) actuary might bear some responsibility for this. I stand corrected.