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Respondent asserts that a direct calculation of the accrued
liability independent of the assets is not necessary. Respondent
contends that the actuary must compute on a level basis a reserve
funded over the working lives of the covered employees. Further,
respondent posits that since the funding does not begin before the
reserve is created, the reserve must be computed by allocating the
cost in a level amount over the remaining lives of the employees.
Respondent contends that (1) the actuarial methodology used must
determine contributions at a “rate” that would be level if
actuarial assumptions were exactly realized, (2) the funds may only
accumulate gradually, and (3) in order to accomplish the gradual
funding, the actuarial method must provide for the ratable
accumulation of funds over the remaining working lives of the
covered employees. Respondent asserts that the following excerpt
from the legislative history supports his position: “The conferees
intend * * * that the funding of retiree benefits * * * be no more
rapid than on a level basis over the remaining working lifetimes of
the current participants”. H. Conf. Rept. 98-861, supra at 1157,
1984-3 C.B. (Vol. 2) at 411. Respondent contends that once an
employer elects to fund a reserve for postretirement benefits under
section 419A(c)(2), it must then select an actuarial cost method
that satisfies this statutory requirement. Respondent concludes
that the aggregate cost method properly allocates the costs in a
level amount over the remaining lives of the covered employees. In
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