M & K Employee Solutions, Inc. v. Trustees of IAM Nat. Pension · ¶23

The IAM National Pension Fund (Fund) is an MPP serving employees who are covered by collective bargaining agreements with the International Association of Machinists and Aerospace Workers. In November 2017, its actuarial frm, Cheiron, published the annual valuation of the Fund's assets and liabilities for the 2016 Plan Year. Using a discount rate of 7.50%, Cheiron valued the Fund's UVBs at close to $500 million. Two months later, on January 24, 2018, Cheiron met with the Fund's trustees to discuss the actuarial assumptions it would use to calculate withdrawal liability for employers who withdrew in 2018. They settled on a discount rate of 6.50%, 1% lower than the rate previously used. Cheiron published its actuarial valuation for Plan Year 2017 on April 17, 2019. Using the 6.50% discount rate, it valued the Fund's UVBs at just over $3 billion—six times the prior year's figure.

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