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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    ERISA

Date & Time
  • event Date

    Wednesday, September 23, 2020

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will provide ERISA counsel and advisers an in-depth analysis of the use of actuarial assumptions in defined benefit plans. The panel will discuss the current litigation landscape and developments in the cases that challenge plan actuarial equivalence factors. The panel will also review critical considerations for plan sponsors and fiduciaries who may be at risk of facing these claims from participants and beneficiaries.

Faculty

Katherine B. Kohn
Partner
Thompson Hine

Ms. Kohn is a partner in the firm’s Employee Benefits & Executive Compensation group. She counsels small businesses, Fortune 500 companies, nonprofits, individual owners, boards of directors, unsecured creditors’ committees and plan sponsors on qualified and nonqualified retirement plans, multiemployer (union) plans and health plans with a specific focus on bankruptcies, mergers and acquisitions and corporate planning. Ms. Kohn assists her clients in finding practical and valuable solutions regarding plan mergers and spinoffs, plan de-risking transactions, plan terminations, plan corrections, overfunded plans and corporate transactions and reorganizations involving retirement and health plans. She also counsels her clients on matters related to multiemployer plan issues, including withdrawal liability and benefits litigation. Ms. Kohn advises private funds and benefit plan investors on ERISA compliance issues, particularly with regard to disclosure, plan investment issues and negotiations.

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Brian J. Lamb
Partner
Thompson Hine

Mr. Lamb represents companies and their directors and officers in complex business disputes, including ERISA litigation, securities and shareholder litigation, corporate governance and fiduciary disputes, and litigation arising out of mergers, acquisitions and tender offers, and complex contract disputes. He also has significant experience litigating tax controversies against the federal government.

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Joshua Shapiro
Senior Actuarial Advisor
Groom Law Group Chtd - Washington

Mr. Shapiro’s practice focuses on the design funding, and administration of multiemployer, single employer, and governmental retirement plans. His experience includes working with a wide range of organizations to ensure that their retirement programs meet their financial and human resources objectives while complying with the applicable laws and IRS, PBGC and DOL regulations. Mr. Shapiro is a former Deputy Director for Research and Education at the National Coordinating Committee for Multiemployer Plans.

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Description

Defined benefit plans use actuarial assumptions when calculating optional forms of benefits (such as joint-and-survivor or certain-and-life annuities) or early retirement benefits, which are typically actuarially equivalent to a single life annuity. Many plans use assumptions that may not reflect current mortality tables or interest rates.

In 2018, plaintiffs began filing lawsuits challenging these actuarial assumptions--typically the use of an older mortality table--claiming that the assumptions do not produce actuarially equivalent benefits as required under ERISA. The plaintiffs argue this causes retirees to lose portions of their vested retirement benefits.

Developments in these lawsuits against plan sponsors, such as MetLife and Pepsi, have shed some light on the risks and potential liability associated with the use of older actuarial assumptions. These developments will serve to guide sponsors and their ERISA counsel on whether and what actions to take to address these issues.

Listen as our panel discusses developments in the actuarial equivalence cases, as well as potential defenses to these plaintiffs’ claims. The panel will also discuss possible plan modifications and other critical considerations for plan sponsors and fiduciaries.

Outline

  1. Overview of the use of actuarial assumptions in retirement plans
  2. Fiduciary obligations and liability
  3. Recent cases and developments
  4. Best practices for ERISA counsel and plan sponsors

Benefits

The panel will review these and other key issues:

  • The use of actuarial assumptions in retirement plans' calculation of optional forms of benefits
  • Recent court cases challenging plans' actuarial assumptions
  • Plan sponsor and administrator defenses
  • Critical considerations for plan sponsors and administrators