US- The Fresno County Employees Retirement Association has commissioned a study to review the effect the financial downturn may have on the employer's contribution rate.
Segal told the pension fund that, "based on studies Segal has already performed, it is anticipated that the contribution rate impact will be particularly severe for those retirement systems, such as FCERA, that apply a market value of assets corridor in determining the final actuarial value of assets used in determining the employers' contribution rate," the minutes read.
FCERA allows a corridor of 80% to 120% meaning the actuarial value of the pension fund has to remain between 80% and 120% of the market value of the portfolio.
The actuarial value typically takes into account future liabilities, current market value, mortality rates and other factors that can make the actuarial value differ from the market value.
FCERA's retirement administrator Roberto Peña told trustees that changing the asset smoothing period or suspending the market value corridor could dampen the effect the markets will have on contribution rates.
Pension freedoms could generate as much as £1.9bn a year in tax revenue for the next 10 years, according to research by the Pensions Policy Institute (PPI).
The Pension Protection Fund (PPF) has conceded it does not have "all the data we need to calculate" the impact of last month's ruling that some benefits may be unlawful.
A looming court decision on gender equalisation of pension schemes could hit FTSE 100 profits by up to £15bn, Lane Clark and Peacock (LCP) says.
Dutch custodian KAS Bank has created a fintech solution to help schemes save on costs and improve transparency of currency hedging strategies.