M & K Employee Solutions, Inc. v. Trustees of IAM Nat. Pension · ¶20

To make these predictions, a plan's actuary must select demographic and economic assumptions about how the plan's assets and obligations will change over time. American Academy of Actuaries, Issue Brief: Selection of Actuarial Assumptions for Multiemployer Plans 3 (July 2020). A key actuarial assumption—the one relevant here—is the discount rate: the interest rate “used to discount future benefit payments to their present value.” 87 Fed. Reg. 62317 (2022); see Actuarial Standards Board, Actuarial Standard of Practice No. 27, § 3.3 (2023) (ASOP). A higher discount rate reduces the value of the plan's UVBs. 87 Fed. Reg. 62317. Lower UVBs, in turn, correspond to a lower withdrawal liability for employers. Ibid.

preliminary print (page proof)
Source edition
Passage preview. Read in context for the complete text, notes and references.