Tag: mortality assumptions

The suit against fiduciaries of a Huntington Ingalls Industries pension plan has reached a settlement that includes a $2.8 million payment.

“The use of mortality data that is over 40 years old could, plausibly, be unreasonable,” the ruling states.

Allegations in the lawsuit, which has now cleared Rockwell’s dismissal motion, echo those filed in other lawsuits challenging the actuarial assumptions used by pension plan sponsors to value alternative forms of benefits other than the default.

The report also found a decline in future rates of mortality improvement. 

“It is important for actuaries for all types of pension plans, including those who work with multiemployer and public-sector plans, not to reverse expectations for mortality improvement in response to the latest data,”says Eli Greenblum, chief actuary for The Segal Group.