Dinosaur Posted June 11, 2012 Posted June 11, 2012 In March, 2012 it was published that there was some funding relief with respect to interest rates used in actuarial valuations starting in 2012. "For 2012 the interest rates must be within 10% of the average of benchmark bond rates for the 25-year-preceding period, according to news reports" Are there any published interest rates somewhere to conform with these new guidelines? We have just been using the regular published rates that we used for 2011. What are other people doing?
Andy the Actuary Posted June 11, 2012 Posted June 11, 2012 When was this signed into law???? The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Dinosaur Posted June 11, 2012 Author Posted June 11, 2012 When was this signed into law???? I guess it was just passed by the Senate. Maybe that is why I can't find any more information on it. From a BenefitsLink story: March 15, 2012 (PLANSPONSOR.com) – The U.S. Senate passed a highway bill that includes a provision for pension relief. Senate Passes Pension Funding Relief: The U.S. Senate passed a highway bill that includes a provision for pension relief. The measure expands the period used for determining interest rates to calculate pension liabilities to 25 years. The interest rates used in 2012 must be within 10% of the average of benchmark bond rates for the 25-year-preceding period, according to news reports.
david rigby Posted June 11, 2012 Posted June 11, 2012 Don't get too excited. It's not going to happen. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Effen Posted June 11, 2012 Posted June 11, 2012 I'm not so sure it won't happen, but it definately has not happened yet. The Senate tacked it onto a highway bill as a way to pay for it (lower contributions, lower deductions, higher taxes). The House stripped it out, and the bill is still sitting. Congress is getting lots of pressure from various groups for relief and has been willing to listen. So, I wouldn't bet the house it isn't going to happen, just probably not anytime soon...think after November 6th. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
AndyH Posted June 12, 2012 Posted June 12, 2012 think after November 6th. Ah, my one end of year val will be all set then!
david rigby Posted July 6, 2012 Posted July 6, 2012 Effen was/is correct. The bill was signed today. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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