WITHDRAWAL
LIABILITY:
An Example of the Rael & Letson Approach |
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Issue:
In the latest actuarial valuation, Rael & Letson reported that there was
an unfunded vested liability for the first time. Any employer who leaves
the plan during the coming year will become subject to withdrawal liability.
The administrative procedures for billing withdrawing employers have not
been finalized. |
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Process:
Rael & Letson worked with the Administrator to develop forms for reporting
information vital to the calculation of withdrawal liability and created
new forms for notifying and billing the employer. A new database was designed
to track employer contributions and hours. |
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Outcome:
The Board of Trustees was able to submit timely accurate assessments to
withdrawing employers. Their system for tracking withdrawal liability has
been completed. |
