Society of Actuaries Explores New Concepts of Public Pension Plan Models
The SOA Announces Leading Proposals from Call for Models Contest
Schaumburg, IL (June 18, 2018) – The Society of Actuaries (SOA) announces the winning submissions from its Retirement 20/20 Call for Models for Public Pension Plans Contest. The SOA and its Retirement Section issued this call for model proposals to identify new and existing concepts involving public pension plans.
The authors of the winning submissions received a $10,000 prize. The proposals were selected based on how each aligns closely with the principles of Retirement 20/20. Started in 2006, Retirement 20/20 is an initiative to bring together experts interested in and impacted by retirement issues to design new retirement systems from the ground up that better meet the economic and demographic needs in North America.
The winning proposals include:
- Chun-Ming (George) Ma, FSA, FCIA, Ph.D., explores the funding approach currently applied to defined benefit pension plans in Canada. The suggested model emphasizes how the pension benefits provided to a generation of participants could be funded by level costs paid over the service periods of that generation.
- Sandra J. Matheson, MBA, and Gene Kalwarski, FSA, EA, FCA, MAAA, on the MainePERS multiple-employer defined benefit plan risk-sharing model. The modified design is a risk-sharing framework created specifically to secure the sustainability of the plan in a lower earnings environment.
- Douglas J. Fiddler, ASA, EA, FCA, MAAA, R. Paul Schrader, ASA, Robert A. Wylie, and Matthew L. Clark, CFA, on the South Dakota retirement system generational benefit structure. The basic tenets of this structure are a contribution budget, flexible benefit features that respond to investment returns and overall system experience, and statutory funding thresholds that require corrective actions.
- Rowland Davis, FSA, on the creation of a middle ground for public plans. The paper focuses on a program for accumulating funds during the active employment phase and a program for paying lifetime benefits to participants after retirement.
About the SOA
With roots dating back to 1889, the Society of Actuaries (SOA) is the world’s largest actuarial professional organization with more than 30,000 actuaries as members. Through research and education, the SOA's mission is to advance actuarial knowledge and to enhance the ability of actuaries to provide expert advice and relevant solutions for financial, business and societal challenges. The SOA's vision is for actuaries to be the leading professionals in the measurement and management of risk. www.SOA.org