Multi-Employer Question

[Guest Happy Actuary]

I do not have a lot of recent multi-er experience, but I was wondering - is it common for plans to use one rate for funding, but a different interest rate assumption for w/drawal liability?

If so, does this make sense?

thx!!

[JanetM]

In my experience with SMW national plan, they use the plans assumed rate of return on assets for calculating the liability.

[Effen]

Do a search on the multiemployer board and you should find a few threads.

I would say it is common to use different assumptions for w/drawal liability, although it is by no means the norm. Segal uses a method that uses different rates depending on whether or not they are funded. They also use a rate that is tied to the PBGC rates. If you do a little poking around, you should be able to find a write-up.