BRC provides a broad range of pension consulting services for sponsors of both public and private sector defined benefit plans. Our knowledgeable team of actuaries have decades of experience performing actuarial valuations and providing pension related consulting services. We are dedicated to providing the highest level of service and have the experience and depth to help you manage your plan in the most efficient manner. Our pension consulting services include:
Actuarial Valuations
Funding Valuations
We can assist you with the annual funding valuation of your defined benefit plan. Whether you are a public or private plan sponsor, our actuaries have extensive experience in determining a contribution amount that will satisfy regulatory requirements and meet your annual funding goals. In addition, if you need to develop a new or modify an existing funding policy, we can provide funding projections that will help with this task.
Accounting Valuations
In addition to funding valuations, we also perform accounting valuations for private sector clients who are subject to FASB financial accounting standards and for public plan sponsors who are required to disclose financial information according to GASB accounting standards. Our accounting valuation services include:
- Calculation of Expense and Disclosure Requirements under FASB ASC 715-30 – Expense and disclosure requirements under FASB ASC 715-30 (formerly FASB 87) are a fundamental component of the financial disclosures of many private sector employers. Our actuaries possess in-depth knowledge of the FASB financial accounting standards and their application to both qualified and non-qualified defined benefit (SERPs) plans.
- Calculation of Expense and Disclosure Requirements under GASB 67/68 – Similar to private sector employers, expense and disclosure requirements under GASB 67 and 68 are a key financial reporting requirement for public employers as well. Our actuaries are thoroughly versed in GASB 67 and 68 and will provide a compliant disclosure report in a user-friendly presentation.
Additional Analysis
Our annual pension valuation process includes a detailed analysis of all actuarial gains and/or losses for both funding and accounting valuations. This analysis includes a detailed review of changes in plan liabilities and assets. The gain/loss analysis allows us to identify any significant trends and assists us in making recommendations for changes in actuarial assumptions.
Valuation Reports
Our valuation reports are comprehensive and easily understood. They document all required calculations, include a summary of plan provisions, an outline of the assumptions and methods utilized in the valuation, plan membership statistics and a glossary of valuation related terms.
Compliance
Our actuaries can assist defined benefit plan sponsors in satisfying the regulatory and compliance requirements for various governmental agencies. Examples of our services include:
- Testing for nondiscrimination in benefit amounts under IRC Section 401(a)4.
- Minimum coverage testing under IRC Section 410(b).
- Top heavy testing under IRC Section 416.
- Minimum participation testing under IRC Section 401(a)26.
- Preparation of the Form 5500 filing, including applicable schedules.
- Preparation of Form 8955-SSA to report benefit amounts of terminated vested participants.
- Preparation of Form 1099-R to report plan distributions.
- Preparation of the Private Pension Guarantee Corporation (PBGC) comprehensive premium filing.
- Preparation of Required Annual Funding Notice.
- Calculation of Minimum Required Distributions (RMDs).
- Calculation support for Qualified Domestic Relations Orders (QDROs).
- Preparation of periodic benefit statements.
Asset Liability Forecasting
We have developed robust models to project the financial status of a plan. Our models provide detailed information on plan funding, financial disclosure, accommodate varying future economic cycles and asset allocation strategies. In this type of analysis, potential asset allocation strategies are analyzed in conjunction with the plan’s forecasted financial status in order to develop an integrated investment and funding policy.
Actuarial Audits
Further bolstering our depth of expertise is our actuarial audit practice. Our actuaries are frequently engaged to review the work of other actuarial firms. We conduct ongoing reviews for individual plan sponsors and provide actuarial support for independent auditing firms. Actuarial audits vary in complexity and we are fully equipped to perform either a comprehensive actuarial review or undertake a less extensive examination if necessary. For example, we frequently review and analyze financial statements according to the applicable guidelines under both FASB and GASB accounting statements and review the actuarial assumptions and methods used in defined benefit plan actuarial valuations.
Plan Design
Retirement plan design can be an overwhelming task and we can assist you with the process. We have helped clients create traditional defined benefit, hybrid and cash balance plans that fit their specific needs. Our design services can be tailored to obtain a certain goal within the current structure of the plan or it can involve a global benefit review to create a new plan that satisfies a particular compensation goal and employer philosophy.
When designing a plan, it is important to establish policy that considers the plan’s current financial condition, if applicable, the sponsor’s level of risk tolerance, the age of participants, turnover rates and the ability to fund plan benefits. After reviewing and understanding the importance of each of these factors, we can develop a plan design that will meet your objectives. Our approach to pension plan design incorporates employer goals, employee needs and utilizes our projection and valuation techniques to manage risks. We believe this approach promotes a comprehensive process that will result in an effective and sustainable long-term solution under varying financial conditions.
In addition to qualified plan design, we also offer plan design services for Supplemental Executive Retirement Plans (SERPs). If your goal is to provide executives with desirable and secure retirement income, a SERP is one of the most effective ways to deliver meaningful executive compensation.
Experience Studies
At some point, some of the actuarial assumptions used in the valuation will require modification. An experience study compares actual plan experience with predicted experience under the current actuarial valuation assumptions. A typical study will include both economic and non-economic assumptions. Upon completion, we will make recommendations for changes in the actuarial assumptions and quantify the impact of the recommended changes on plan financial disclosures and funding, if applicable. We recommend that a plan sponsor conduct an experience study at least once every five years.
Early Retirement Incentives
Retirement policies have a significant impact on employee retention. We can assist you in developing an early retirement incentive arrangement that will help you accomplish a particular workforce strategy. For public plan sponsors, plan designs that can accomplish specific workforce planning strategies are Deferred Retirement Option Plans (DROPs) and Partial Lump Sum Option Plans (PLOPs).
Benefit Calculations
Administration of a defined benefit plan includes routine benefit calculations. These calculations can be time-consuming and accuracy is essential. BRC provides benefit calculation services for clients. Every calculation is reviewed by a credentialed actuary giving you confidence in the accuracy of the results that are provided to each participant.
Plan Termination
Termination of a defined benefit plan is a complex and lengthy process that can take up to 18 months to complete. There are many legal and actuarial calculation requirements that are regulated by the Internal Revenue Service (IRS) and Pension Benefit Guarantee Corporation (PBGC). We have been involved in numerous termination projects and can work directly with your ERISA counsel to provide a smooth and efficient termination process. Our services include:
- Preparation of the Notice of Plan Benefits to inform affected parties of their benefits and how they are calculated before filing PBGC Form 500. This is a PBGC requirement.
- Preparation of the Standard Certification of Sufficiency (PBGC Form 500 Schedule EA-S).
- Preparation of IRS Form 6088 (Distributable Benefits from Employee Pension Benefit Plans).
- Preparation of benefit election forms for each participant.