At long last, pension funding reform is here. The Pension Protection Act (PPA) of 2006 represents a complete rewrite of funding rules for pension plans, including a single liability measure for pension plans, full funding of market-based obligations, simplified amortization of unfunded liabilities, reduced smoothing of assets and liabilities, and new penalties and safeguards to protect against significant pension underfunding. Presenters discuss major aspects of the legislation related to the new rules, which take effect in 2008.
 

If one more person says discount using three segments without explaining what that means and providing an example, I’m going to scream! If you feel the same, this is the session for you. We’ll get back to basics and really explain how to calculate assets and liabilities for various purposes under PPA (funding, PBGC premiums, etc.). Come and hear about options for discounting future payments and mortality assumptions. Find out where actuaries still have discretion and where it’s been taken away. Learn all the new PPA lingo, compare and contrast the various measures. This session is BASIC, and is a must-see for anyone who hasn’t yet dug into the new rules. If you already have a good handle on how assets and liabilities will be calculated, you should go directly to PPA-II. (Repeated at Session 202.)
 

When is a DRO just a DRO and when is it a QDRO? The speakers review past and current developments regarding QDROs, including: features of good and bad QDROs, DOL and ASB guidance standards, model provisions, and special problems.
 

The panelists highlight hot new issues, regulations, and rulings from the IRS, DOL, and PBGC. They also emphasize the practical application of these new developments and their effect on client consulting assignments. (Repeated at Session 503.)
 

Retiree medical programs may have large liabilities, but they have traditionally not been funded. As these liabilities continue to grow and become more significant to employers, and as public sector accounting rules become effective, employers are considering funding the programs. The participants look at the funding of public and private sector retiree health plans. Current practice and best practices are discussed, as well as the accounting implications of funding. Various funding vehicles are examined along with issues including pros and cons of funding, setting discount rates, OPEB obligation bonds, split-funded OPEBs, rating agencies, and accounting standards FAS 106, GASB 43, and GASB 45.
 

Complex coverage and nondiscrimination rules under 401(a)(4), 410(b) and 414(s) affect all our clients. This session’s panelists address how these code sections combine to form a comprehensive set of nondiscrimination rules for qualified plans. (This session is an overview and does not get into details or case studies.)
 

Plan design options range from the simple to the most complex and PPA has added a new wrinkle. How do you choose the optimal solutions for each client? Panelists discuss designs which work for small plans with focus on real world issues, common problems, and practical solutions.
 

A lot of time is spent worrying about limits placed on our professional judgment by outside bodies – IRS, FASB, PBGC, etc. If you’re looking for an overview of the standards affecting pension actuaries issued by our profession through the ASB (Actuarial Standards Board), this session is for you! As a bonus, an overview of our current Code of Professional Conduct is presented, too.
 

All the rules have changed and the panelists go through each step, with examples, to help you understand how to determine the minimum funding requirement and maximum deductible limit for single-employer pension plans. (Repeated at Session 401 & 502.)
 

If one more person says discount using three segments without explaining what that means and providing an example, I’m going to scream! If you feel the same, this is the session for you. We’ll get back to basics and really explain how to calculate assets and liabilities for various purposes under PPA (funding, PBGC premiums, etc.). Come and hear about options for discounting future payments and mortality assumptions. Find out where actuaries still have discretion and where it’s been taken away. Learn all the new PPA lingo, compare and contrast the various measures. This session is BASIC, and is a must-see for anyone who hasn’t yet dug into the new rules. For those of you who already have a handle on the basics, skip this session and go directly to PPA-II. (Repeat of Session 101.)
 

This overview session is designed to provide interested actuaries with a primer in the world of executive compensation and benefits. Learn the basics of 409A, proxy rules, nonqualified retirement plans, golden parachutes, and equity compensation from design, legal, and accounting standpoints.
 

What makes this session so interesting is seeing ways to design and administer plans. A review of recent court cases provides insight on the consequences of improper plan design and administration.
 

The speakers at this session examine the main effects that bankruptcy can have on a plan sponsor’s defined benefit plan. Benefit restrictions, minimum funding, and accounting issues are addressed, along with the intricacies of the distress termination process. Involuntary terminations are also covered. All of these are viewed from both the current pre-PPA environment and the PPA world that begins in 2008.
 

The Pension Protection Act of 2006 expanded the scope of retiree medical benefits which can be funded through a transfer of assets from an over-funded defined benefit plan (under Code Section 420). Panelists review the new rules in depth and provide examples of their application.
 

Volunteers from the audience debate with each other and our panel of experts on ethical problems that are serious, difficult and fun. Your lucrative new client has a conflict of interest with another client. Your boss made a big mistake and now you have to clean up the mess. Your prestigious new assignment is bringing you fame and fortune – and guilt-ridden sleepless nights! What’s an actuary to do? Help!
 

So, you thought you knew all about lump sums? New actuarial assumptions for lump sums are required under the recently passed PPA. Speakers at this session discuss the mandated actuarial assumptions and new restrictions (based on plan funding) that may prevent the full distribution of a lump sum. Mechanics of incorporating lump sum assumptions into the calculation of the funding target are also discussed.
 

The work of the Actuarial Board for Counseling and Discipline (ABCD) affects all actuaries in the US. Speakers at this session offer attendees an opportunity to gain a better understanding of what the ABCD does, what types of situations they see, and the value they provide to the profession. (This session is not recorded.)
 

Actuaries work regularly with some accounting standards (such as FAS 87 and FAS 106), and are becoming more involved in others (like FAS 123(r)). However there are a number of other accounting standards which may impact actuaries and their clients. In this session, panelists describe some of these lesser known standards, including FASB Statements No. 5 (Accounting for Contingencies), No. 43 (Accounting for Compensated Absences) and No. 130 (Accounting for Comprehensive Income).
 

In 1992, the Securities and Exchange Commission (SEC) adopted rules for disclosure of executive compensation. In 2006, the SEC decided they don’t work. The new rules have far more application for actuaries. Do you know how and why?
 

The Pension Protection Act has overhauled the participant disclosure rules. Not only are all employers required to disclose new information, but deadlines for disclosure have been moved up. In this session, the speakers review the new rules, including the benefit statement requirements, and provide a roadmap to navigate through the communications maze.
 

Automatic Enrollment, Qualified Automatic Contribution Arrangement (QACAs), Qualified Default Investment Alternatives (QDIAs), stock diversification requirements -- what they are and why you should care. They are all major provisions of PPA 2006 that impacts your clients’ defined contribution plans. Once you’ve mastered the revised compliance framework, you’ll be ready to focus on how to design (or re-design) a DC plan in an environment where DB coverage is limited or non-existent, and to address the interplay between qualified and non-qualified plans in the post-PPA and post-AJCA 2004 era.
 

In this introductory session, actuaries experienced in consulting with government contractors discuss issues related to employee benefit plans, CAS 412 and 413, segment closings, nonqualified plans, plan terminations and forward pricing and cost reimbursement under the Federal Acquisition Regulations (FAR).
 

A panel of PBGC representatives provide an overview of recently published PBGC guidance, highlights from this year’s “Blue Book,” and other issues of interest to actuaries. There is plenty of time for questions from the audience. Participants are encouraged to come prepared with specific technical questions related to a PBGC topic.
 

Financial economics and its applicability to pension funding and disclosure have been hotly debated in recent years, with excellent arguments both for and against it. Even though new funding rules and accounting standards seem to derive from financial economic theory, the debate isn’t over, especially for plans with a longer-term, less market driven outlook. Come and hear our panel put forth new arguments outside the context of the regulatory requirements.
 

The extensive scope of the Pension Protection Act of 2006 includes numerous topics beyond new pension plan funding rules, in many instances requiring action before 2008. Presenters discuss PPA highlights on hybrid plans, lump sum distributions, reporting and disclosure, defined contribution plans, and assorted other provisions such as the new survivor annuity requirement and PPA remedial amendments.
 

All the rules have changed and the panelists go through each step, with examples, to help you understand how to determine the minimum funding requirement and maximum deductible limit for single-employer pension plans. (Repeat of Session 201 & 502.)
 

The Pension Protection Act legitimized hybrid plans after years of uncertainty. The speakers cover the technical aspects of hybrid plans and how they changed under the PPA. Speakers address the regulations that are needed to effectively sponsor these plans and cover the aspects that will be left for the courts.
 

Experienced practitioners involved in the process lead a review of government responses to the Gray Book questions. They comment on responses of particular interest and facilitate a dialogue on practical implications of the responses and alternative approaches where complete answers are not provided. (Repeated at Session 603.)
 

The 2006 Pension Protection Act has specific provisions for multiemployer plans. Funding requirements are revised, but far less than the complete overhaul facing single employer plans. Other requirements include disclosure rules, plus a color-coded system of funding rules for “endangered” plans. A panel of multiemployer experts take you through the rules specifically for your multiemployer clients.
 

Adverse capital market results in recent years have strained pension plan financing. The expected changes in funding and accounting rules add to the perceived risk and uncertainties of plan sponsorship. Speakers at this session focus on the use of asset/liability studies to assess the impact of investment policy decisions in the context of different plan design and participant demographics, as well as the employer’s financial strength, objectives and funding policy. Panelists also review liability driven investing, or LDI, techniques.
 

Have you ever wished for the opportunity to discuss your problems with a group of peers? This workshop is an open forum on current problems and issues specific to sponsors of small plans. Topics may include IRC 401(a)(26), 410(b) (w/update), 401(a)(4), 401(a)(17), 415, and 401 (a)(9). (This session is not recorded.)
 

The Chair and Executive Director of the Joint Board for the Enrollment of Actuaries provide an update on Joint Board activities and answer participant’s questions regarding professional, disciplinary and other topics of interest to EAs. The audience participants are given the opportunity to share their concerns and ideas with the Joint Board.
 

Despite the movement away from defined benefit plans that we’ve recently seen, a defined contribution only approach is not the answer for every company. Alternative defined benefit plan designs can mitigate many of the risks that employers are looking to eliminate. Our speakers share recent plan design success stories, the future of hybrid plan designs and new designs that might take their place. (This session is not recorded.)
 

After PPA, if the funding percentage drops too low, all sort of things can happen,
including:

• At-risk funding rules may kick in;
• Benefit limitations on accruals, lump sums, or plan amendments may be triggered;
• Use of credit balances may be temporarily restricted or permanently
  declassified.

Just to keep you on your toes, the way you determine the funding percentage isn’t always the same. In this session, speakers provide an in-depth analysis of the special rules that apply to severely underfunded plans with examples and consulting alternatives. (Repeated at Session 601.)
 

All the rules have changed and the panelists go through each step, with examples, to help you understand how to determine the minimum funding requirement and maximum deductible limit for single-employer pension plans. (Repeated at Sessions 201 & 401.)
 

The panelists highlight hot new issues, regulations, and rulings from the IRS, DOL, and PBGC. They also emphasize the practical application of these new developments and their effect on client consulting assignments. (Repeat of Session 103.)
 

An experienced panel of public plan actuaries discuss current issues in the public sector with a special emphasis on the provisions of PPA that apply to public sector plans. Other topics include the evolving political environment, actuarial assumptions, investment issues, and conversions to, and from, defined contribution plans. (Linked to Session 804.)
 

You may think you are done when you finalize the complex issue of deciding to actually terminate the plan; but there is still a long way to go. Taking a plan through the termination process - either a standard termination or a distress termination - is long and complex, and additional issues arise in involuntary terminations. Speakers address timing, plan amendments, funding, distributions and other issues involved in the termination of single employer plans.
 

PPA presents both opportunities and challenges for small plan sponsors and their advisors. Funding, distributions and client expectations are only a few of the areas affected by PPA. Speakers look at PPA and how it impacts small plans.
 

In 2006, the Financial Accounting Standards Board implemented its first phase of accounting reform that resulted in the recognition of a retirement plan’s funded status on the company’s balance sheet. The exposure draft for Phase 2 is on its way, and people are expecting further marking-to-market migration. This time, it will occur in the income statement.

The panel addresses the financial ramifications of Phase 1 and the anticipated results of Phase 2. Then they compare the state of the US defined benefit environment to that of the UK before its change to FRS 17, followed by discussion of possible US outcomes.
 

After PPA, if the funding percentage drops too low, all sort of things can happen, including:

• At-risk funding rules may kick in;

• Benefit limitations on accruals, lump sums, or plan amendments may be triggered;

• Use of credit balances may be temporarily restricted or permanently declassified.

Just to keep you on your toes, the way you determine the funding percentage isn’t always the same. In this session, speakers provide an in-depth analysis of the special rules that apply to severely underfunded plans with examples and consulting alternatives. (Repeated at Session 501.)
 

The GASB OPEB statements are fully effective for Phase 1 governments beginning in 2007; with Phase 2 and 3 entities following in 2008 and 2009. This is a “must attend” session for consultants with clients in the public sector. Come and hear about the details of these statements, how they differ from FAS 106, the level of obligations that are being measured, and the expected impact this will have on government entity P&L statements, bond ratings, etc.
 

Experienced practitioners involved in the process lead a review of government responses to the Gray Book questions. They comment on responses of particular interest and facilitate a dialogue on practical implications of the responses and alternative approaches where complete answers are not provided. (Repeat of Session 403.)
 

Multiemployer plans (also known as “Taft-Hartley” plans) present unique issues for actuaries. Panelists discuss key recent developments in multiemployer plans other than those related to PPA, which is addressed in a separate session. Topics for this session include status of minimum funding relief, plan design issues, and recent court cases.
 

PPA has answered a lot of questions related to the future of pension funding rules. A number of issues, however, remain unclear. Panelists review and discuss the major open issues on which the pension community still awaits guidance.
 

In the late 1990’s employers operated their plans in accordance with the prevailing Laws and Regulations and later amended their plans to reflect their operation. As part of its examination program, the IRS has announced that will no longer be an acceptable route. As the Code and Regulations change, amendments will have to be made on an interim basis until the Employer’s plan is amended and restated under the Service’s new staggered Determination Letter program. Come hear about EGTRRA, PFEA, KETRA, GOZA and PPA and their interplay in the fascinating new “World of Plan Amendments.”’
 

At some point you are going to make a mistake, or your client may think you did. What should you do now to protect yourself? What should you do when you find a mistake, when your client complains or when a suit is filed? In this interactive session, panelists suggest concrete, practical steps you can take to protect your client and yourself before and after a claim is filed.
 

Transition rules, phase-ins, quarterly contributions, accelerated valuation schedules, benefit restrictions, two flavors of credit balance, an enormous range between required and deductible contributions. What’s a plan sponsor to do? Should I burn my credit balance? Use it? Does my decision change if I freeze my plan? Speakers discuss a variety of plan strategies you may want to consider to comply with new pension funding rules. (Repeated at Session 801.)
 

Participants explore the various mathematical models and numerical techniques relevant to stock option valuations, and how they apply techniques under FASB’s accounting guidance. As part of the exploration of various valuation techniques, the presenters look at the key assumptions that go into these models and the resulting sensitivities. The limitations of the models and the considerations that go into the selection of a particular model are discussed. Finally, the process of analyzing experience and factoring judgments about the future in setting assumptions is presented.
 

In the past year, the IRS has withdrawn proposed regulations and PPA has made changes to 415 regulations. Speakers address where we are now and what issues are still open.
 

This session is a follow-up to Sessions 404/604, providing multiemployer plan actuaries an opportunity for a “hands-on” discussion of problems, issues, and experiences encountered in their practices. (This session is not recorded.)
 

The year 2007 will be a busy year for nonqualified deferred compensation plan sponsors. To comply with final regulations under Code section 409A – and avoid onerous tax penalties for participants – sponsors may have to change NQDC election and distribution provisions and solicit new payment elections from plan participants. They must also grapple with the Pension Protection Act’s new restrictions on prefunding executive officers’ NQDC benefits in a rabbi trust or similar arrangement when any controlled group DB plan sponsor is in bankruptcy or when any qualified DB plan is at risk or terminated in distress. Panelists at this session focus on 409A compliance for traditional nonqualified retirement plans maintained by taxable employers – including “mirror” 401(k) plans and SERPs.
 

With the passage of pension funding reform, the responsibility of actuaries in selecting funding assumptions has been cut back. The setting of interest and mortality assumptions for funding is no longer left to the actuary’s judgment. The speakers examine the parameters for setting assumptions in the new environment. Is there anything beyond retirement age, turnover, and disability? What about assumptions for expense purposes? Should they be the same as for funding? Will the actuary still come up with a recommended contribution based on his/her best estimate? A very important aspect of this discussion is the application of the relevant ASOPs.
 

Use of PBGC’s e-filing application (My PAA) is mandatory for all plans starting in 2007. A PBGC expert demos the application and squelches any fears you have about going paperless.
 

Transition rules, phase-ins, quarterly contributions, accelerated valuation schedules, benefit restrictions, two flavors of credit balance, an enormous range between required and deductible contributions. What’s a plan sponsor to do? Should I burn my credit balance? Use it? Does my decision change if I freeze my plan? Speakers discuss a variety of strategies plans you may want to consider to comply with new pension funding rules. (Repeat of Session 701.)
 

In 2004, the FASB mandated fair value-based accounting for equity compensation under FAS 123R. Actuaries became involved in the valuation of equity instruments, and also learned that there was more to the accounting rules than meets the eye. At this session, panelists discuss how equity compensation affects your client’s financial statements and disclosures.
 

A panel of high ranking IRS officials field your questions on a number of challenging issues. Don’t miss your opportunity to get an answer to the question that’s been puzzling you.
 

This open forum session is a follow-up to Session 504 providing public plan actuaries an opportunity for a hands-on discussion of problems, issues and experiences in their practices. (This session is not recorded.)
 

IRS regulations for 411(d)(6) allow plans to be amended to eliminate some forms of payment without penalty. In contrast, court decisions have generally expanded the scope of protected plan benefit provisions. Speakers present an overview of this changing environment and examine opportunities for simplifying plan administration and traps for the unwary. Learn how these regulations affect your client’s plans.

The Heinz decision and new regulations redefine an accrued benefit, what is a protected benefit, and when you can get rid of a protected benefit. The panelists discuss new rules and opportunities for simplifying plans.
 

The Pension Protection Act of 2006 modified the rules regarding age discrimination which apply to cash balance plans, but the new requirements also have an impact on ALL defined benefit plans. Panelists review the new rules in depth and present examples of their application to traditional plans as well as hybrid plans.
 

Are you an in-house actuary? This workshop is for actuaries who work on retirement and other plans sponsored by their employers. Attendees have the opportunity to discuss the special problems and issues they encounter. Note: Attendance at this session should be limited to in-house actuaries. (This session is not recorded.)
 

Strange as it seems, the PPA is not the end of Congressional tinkering with the retirement system. The new leaders in Congress are already talking about improving our national retirement savings rate. The speakers at this session initiate the discussion on where our national policy is going. This session serves as the closing session of the EA Meeting and the opening session of the 2007 Pension Symposium.