29 U.S.C. § 1393 — Actuarial assumptions
submitted 46 years ago by Pub. L. 93-406 to r/title-29-LABOR · 278 words · no verdicts yet
This section permits the corporation to prescribe actuarial assumptions and requires each plan to use reasonable assumptions that together give the actuary’s best estimate, or the corporation’s regulatory assumptions. It also permits use of recent valuations or representative samples and defines unfunded vested benefits as nonforfeitable benefits minus plan assets.
(a) The corporation may prescribe by regulation actuarial assumptions for a plan actuary calculating unfunded vested benefits for an employer’s withdrawal liability. Each plan must determine that liability using either: (1) assumptions and methods that are reasonable overall, considering the plan’s experience and reasonable expectations, and that together are the actuary’s best estimate of expected plan experience; or (2) assumptions and methods in the corporation’s regulations for withdrawal liability.
(b) To determine unfunded vested benefits, the actuary may rely on the latest complete valuation used for 26 U.S.C. § 412 and reasonable interim-year estimates. If complete data are unavailable, the actuary may rely on available data or a reasonably representative sample.
(c) “Unfunded vested benefits” means the value of the plan’s nonforfeitable benefits minus the value of the plan’s assets. This section does not otherwise define “nonforfeitable benefits.”
The corporation may prescribe by regulation actuarial assumptions which may be used by a plan actuary in determining the unfunded vested benefits of a plan for purposes of determining an employer’s withdrawal liability under this part. Withdrawal liability under this part shall be determined by each plan on the basis of—
actuarial assumptions and methods which, in the aggregate, are reasonable (taking into account the experience of the plan and reasonable expectations) and which, in combination, offer the actuary’s best estimate of anticipated experience under the plan, or
actuarial assumptions and methods set forth in the corporation’s regulations for purposes of determining an employer’s withdrawal liability.
In determining the unfunded vested benefits of a plan for purposes of determining an employer’s withdrawal liability under this part, the plan actuary may—
rely on the most recent complete actuarial valuation used for purposes of section 412 of title 26 and reasonable estimates for the interim years of the unfunded vested benefits, and
in the absence of complete data, rely on the data available or on data secured by a sampling which can reasonably be expected to be representative of the status of the entire plan.
For purposes of this part, the term “unfunded vested benefits” means with respect to a plan, an amount equal to—
the value of nonforfeitable benefits under the plan, less
the value of the assets of the plan.
Source credit: (Pub. L. 93–406, title IV, § 4213, as added Pub. L. 96–364, title I, § 104(2), Sept. 26, 1980, 94 Stat. 1233; amended Pub. L. 101–239, title VII, § 7891(a)(1), Dec. 19, 1989, 103 Stat. 2445.)
- 1980Enacted · Pub. L. 93-406 · 94 Stat. 1233
- 1989Amended · Pub. L. 101-239 · 103 Stat. 2445
A history note hasn’t been published yet. The record shows enactment by Pub. L. 93-406 on 1980-09-26.
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