It may make for grim reading, but the American Institute of CPAs has just issued guidance on new mortality tables from an actuarial group.
The AICPA has released Question and Answer (Q&A) section 3700.01 (AICPA Technical Questions and Answers) to provide nonauthoritative guidance on the Society of Actuaries’ Retirement Plans Experience Committee’s October 2014 RP-2014 Mortality Tables Report, which includes new mortality tables developed for use by pension plans,
The AICPA’s document discusses in Q&A format how and when nongovernmental employee benefit plans and nongovernmental sponsoring entities should consider, for financial reporting purposes, updated mortality tables if their financial statements have not yet been issued at the time the updated tables are published.
The Q&A explains that the plans and sponsoring entities should consider the specific requirements of GAAP, which requires the use of a mortality assumption that reflects the best estimate of the plan’s future experience for purposes of estimating the plan’s obligation as of the current measurement date. The Q&A relates to both employer and plan pension obligations.
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