Pension and Life Actuarial

Cogent Statistical Services Computing Actuarial Skills:

There is little difference between pension actuarial and life insurance actuarial calculations. The primary difference is that pension plan actuarial calculations have more “exit points” (a.k.a. “turnover”) than life insurance actuarial calculations. The two components that they have in common is the mortality table and the interest rate assumption.

Both pension and life actuarial calculations involve the computation of single premium immediate rates and single premium deferred rates based upon the components of interest, mortality (death) and turnover (decrements).

Pension plan turnover consists of vested termination, non-vested termination, disability, early retirement and retirement. In simple life plans, turnover generally consists of lapse alone. Some life plans permit other types of turnover where the insurance benefit would not be paid.

Pension Actuarial:

• Actuarial Assumptions Setting (Pre-ERISA)
• Actuarial Funding Methods
• Actuarial Valuation Programming:
  • Database Recordkeeping
  • Calculations of Plan Unfunded Liability, Normal Cost and PVTB Calculations for a Variety of Funding Methods (DA, IPG, FFF, etc.)
  • Actuarial Gain and Loss Analysis
• Annuity Types:
  • Contingent Annuity
  • Deferred Annuity
  • Joint and Survivor Annuity
  • Life Annuity
  • Period Certain and Continuous Annuity
  • Variable Annuity
• Fund Market-Basis and Cost-Basis Valuations
• Multiple-decrement and Mortality Table Creation
• Pension Plan Funding Methods:
  • 401(k) Plans
  • Cents-Per-Hour Plans
  • Defined Benefit Plans
    • Deferred Annuity
    • Full Cash Refund
    • Modified Cash Refund
    • Non-contributory
  • Defined Contribution Plans
  • Deposit Administration
  • Flexible Funding Facility
  • IPG (Immediate Participation Guarantee)
• Plan Calculations:
  • Early Retirement Factors
  • Snowball Factors
  • SPD And SPI Rates
  • Frozen Initial Liability
  • Normal Cost
  • Plan Change
  • Vested Pension Benefits
  • Plan Termination Benefits
• Responsible for all aspects of pension benefit plans:
  • Plan Design
  • Plan Interpretation
  • FASB Compliance

Life Insurance (Individual and Group) Actuarial:

• Creation of data mapping documents for developers
• Definition of Current State and planning for Future State in support of the valuation of GAAP benefit reserves, Deferred Acquisition Costs, and the development of associated tabular and qualitative disclosures needed for GAAP LDTI for US individual and group insurance business
• Definition of data requirements around architecture, model inventory and data (source, input & output data).
• Design of the transformation of the current actuarial systems, processes & data in support of a data migration initiative of on-prem systems to The Cloud (including mitigation of PII and PHI data)
• GAAP/LDTI (Long Duration Targeted Improvements) Insurance Actuarial Initiative (Individual and Group Life)
• LTD & STD Calculations
• Multiple Decrement and Mortality Table Creation

The Managing Member of Cogent Statistical Services Computing, Leonard Gray, has pension actuarial programming experience since 1970. Below is a snippet of his curriculum vitae:

Additionally, we have also performed complete studies of existing off-the-shelf actuarial valuation programs. We performed not only a technical review of the program attributes but also we completed a business study regarding the financial impact to your firm based on the introduction of a new program.