ASOP 34 Flashcards
What are the 4 purposes of ASOP 34?
- Provides guidance to actuaries who perform services concerning retirement plan benefits in domestic relations actions; 2. Amplifies ASOPs 4 and 17; 3. Provides information on the actuary’s role and responsibilities; 4. Provide information on factors that may affect the measurement, allocation, or division of retirement plan benefits in domestic relations actions.
What is the scope of ASOP 34?
ASOP 34 applies to actuarial services performed in connection with the measurement, allocation, or division of retirement plan benefits in domestic relations actions.
To what benefits does ASOP 34 not apply?
ASOP 34 is not applicable to actuarial services performed in connection with other post-employment benefits; such as medical benefits.
If ASOP 4 and ASOP 34 conflict which one controls?
To the extent that the guidance in ASOP 34 may conflict with ASOPs of a more general nature, ASOP 34 will govern.
What are Age or Service Dependent Benefits for purposes of ASOP 34?
Benefits for which the amount or timing of benefit payments depends on the covered party’s age or length of service.
What is Allocation Date for purposes of ASOP 34?
The date through which the benefits earned during the marriage are determined. Generally, this is the last day of the allocation period.
What is an Actuarial Valuation for purposes of ASOP 34?
The determination; as of a measurement date; of the actuarial present value of a retirement plan benefit and any related benefits.
What are Age or Service Dependent Benefits for purposes of ASOP 34?
Benefits for which the amount or timing of benefit payments depends on the covered party’s age or length of service.
What is Allocation Period for purposes of ASOP 34?
The period over which the benefits earned during the marriage are determined. This is typically the period from the date of marriage (or, if later, the hire date or plan entry date) to the date of marital separation.
What is Applicable Law for purposes of ASOP 34?
Federal; state; and local statutes; regulations; case law; and other binding authority that may govern the domestic relations action; the retirement plan or plans; or any other aspect of the actuary’s engagement.
What is Allocation Date for purposes of ASOP 34?
The date through which the benefits earned during the marriage are determined. Generally; this is the last day of the allocation period.
Who is a Direct User for ASOP 34?
A present or prospective client or employer who has the opportunity to select the actuary and is able to communicate directly with the actuary about the actuary’s qualifications; work; or recommendations.
What is Allocation Method for purposes of ASOP 34?
A method used to determine the portion of retirement plan benefits that is included in marital property.
What is Allocation of Retirement Plan Benefits for purposes of ASOP 34?
The allocation of retirement plan benefits into two or more portions: a portion that is fully considered to be marital property and a portion that is not marital property; and perhaps a portion that is determined to be partially marital property.
What is Allocation Period for purposes of ASOP 34?
The period over which the benefits earned during the marriage are determined. This is typically the period from the date of marriage (or; if later; the hire date or plan entry date) to the date of marital separation.
What is a QDRO?
A domestic relations order that satisfies the qualification requirements of Internal Revenue Code (IRC) section 414(p).
What is Applicable Law for purposes of ASOP 34?
Federal; state; and local statutes; regulations; case law; and other binding authority that may govern the domestic relations action; the retirement plan or plans; or any other aspect of the actuary’s engagement.
What is a Covered Party for ASOP 34?
The party in a domestic relations action who is covered by the retirement plan.
For purposes of ASOP 34, who is a Spouse?
A party to the domestic relations action who is not the covered party. Normally; the term refers to the current spouse or former spouse of the covered party; but may refer to a child (or children) or other party to the domestic relations action.
What is a Direct User for ASOP 34?
A present or prospective client or employer who has the opportunity to select the actuary and is able to communicate directly with the actuary about the actuary?s qualifications; work; or recommendations.
What is a Domestic Relations Action?
Prenuptial; postnuptial; separation; divorce; and support agreements; and other domestic relations proceedings.
For purposes of ASOP 34, what is Spouse?
A party to the domestic relations action who is not the covered party. Normally; the term refers to the current spouse or former spouse of the covered party; but may refer to a child (or children) or other party to the domestic relations action.
What should the actuary consider when takin on an assignment under ASOP 34?
- Who is the client? 2. any conflicts of interest 3. Nature/scope of engagement 4. Familiarity with local law
What is a DRO?
A court order dividing retirement plan benefits between the covered party and spouse.
Does a conflict of interest exist when the plan’s enrolled actuary represents a former spouse of a plan participant?
Not necessarily; but a potential conflict of interest exists when the retirement plan’s enrolled actuary is retained on behalf of the covered party; spouse; judge; or court.
