Enrolled Actuaries Meeting

[Guest Brian4]

At the 2007 Enrolled Actuaries Meeting, some multiemployer plan items were discussed.

The new provisions for endangered and critical status plans under the PPA of 2006 were described. For the annual certification of a plan's status, describing the calculation methodology in the certification was recommended. For the extended rehabilitation period, the actuary's role is to calculate the figures for meeting the usual emergence criteria, and the trustees make decisions on what they believe are reasonable measures. Items for possible technical corrections were presented. Also, under section 1102 of the Act, for plan years beginning in 2007, a notice of the effect of deferring benefit commencement is to be provided.

One speaker described a managed mass withdrawal liability approach that has been used for troubled multiemployer plans.

For plans with a social security level income option, if a significant number of participants elect this option, then consider whether to reflect a subsidy in the conversion factors in calculating plan liabilities.

The IRS proposal to require service from all employers be combined for the maximum benefit limitations under IRC section 415 was discussed. Subsequent to the meeting, the IRS issued regulations with this rule.