Unisex actuarial equivalence assumptions.

[Guest Dave Burns]

In 1983, the Supreme Court's Norris Decision revolutionized the way we calculate actuarially equivalent benefits by requiring the use of unisex or gender-neutral mortality assumptions. My question is whether a plan can provide that actuarial equivalence for benefits accrued prior to the Norris decision would continue to be determined on a sex-distinct basis and amounts accrued after the Norris decision would be based on gender-neutral mortality. Any cites to support an opinion one way or another?

[Guest mo again]

I don't purport to be an expert in this area, but I think if you substitute "could" for "would", the answer may be yes. I believe the current authority on the matter is still the EEOC Compliance Manual, Vol. II, p. 627-11. This policy guide was issued following Long v. Florida which tested the retroactivity rules. Others may be aware of something that overrides that manual, but I am not. Unfortunately I don't have the manual as a resource any more, but perhaps you do, or have friends. There may be 411(d)(6) issues to consider as well.

[Guest Donkey Kong]

If you substitute "ifs and buts" with "candy and nuts", we would all have a merry Christmas.

[Guest Tom:]

The Norris decision does not apply to retirement plan participants who retired before August 1, 1983. Florida v. Long, (1988, S Ct) 487 U.S. 223. Participants retiring after August 1, 1983 generally have a right to receive unisex benefits only to the extent that those benefits are derived from post-Norris contributions. EEOC v. First National Bank, (1990, DC IL) 740 F. Supp. 1338. The courts generally have not applied the Norris decision retroactively due to the Supreme Court's determination in Norris that applying unisex benefit requirements to pre-Norris retirements would undermine the fiscal integrity of many retirement plans and systems. Arizona v. Norris, (1983, S Ct), 463 U.S. 1073. The EEOC appears to acknowledge that the Norris decision generally does not apply retroactively in the Title VII/EPA Issues Chapter of its current compliance manual.