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.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.