Incomplete Participant Data Affect Reliability of Values Placed by Actuaries on Multiemployer Pension Plans
HRD-84-38
Published: Sep 06, 1984. Publicly Released: Sep 06, 1984.
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Highlights
GAO evaluated the effect of the Multiemployer Pension Plan Amendments Act of 1980 (MPPAA) on employers, participants, and others. Specifically, GAO reviewed the development and reporting of actuarial information.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status Sort descending |
|---|---|---|
| Department of Labor | The Secretaries of Labor and the Treasury should direct the Joint Board for the Enrollment of Actuaries to promote action by and work in cooperation with the actuarial profession to develop appropriate criteria and standards for the disclosure of the potential effect of material amounts for missing participant data on the reliability of actuarial valuations. |
Closed – Implemented
Please call 202/512-6100 for information.
|
| Department of the Treasury | The Secretaries of Labor and the Treasury should direct the Joint Board for the Enrollment of Actuaries to promote action by and work in cooperation with the actuarial profession to develop appropriate criteria and standards for the disclosure of the potential effect of material amounts for missing participant data on the reliability of actuarial valuations. |
Closed – Implemented
Please call 202/512-6100 for information.
|
| Internal Revenue Service | The Commissioner of Internal Revenue should expand Internal Revenue Service enforcement efforts to include examinations of actuarial valuation reports to identify multiemployer pension plans lacking sufficient participant data. |
Closed – Implemented
Please call 202/512-6100 for information.
|
| Department of Labor | The Secretary of Labor should issue regulations, under its ERISA authority, to provide guidance for the maintenance of participant data by pension plans. The Secretary should also expand the scope of Labor's audits of compliance with fiduciary standards to include a review of actuarial valuation reports so enforcement personnel can ascertain whether participant data on multiemployer pension plans are sufficiently complete to enable the actuaries to make reliable actuarial valuations. |
Closed – Not Implemented
Labor decided, in November 1984, to take no further action on this recommendation. It believes that it is better for the Joint Board and actuarial societies to develop criteria and standards for participant data sufficient to make reliable actuarial determinations.
|
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Actuarial tablesCost analysisData integrityEmployee benefit plansPensionsReporting requirementsStatistical dataActuarial valuationsPension plansBeneficiaries