Actuarial Organizations’ Plans

All the actuarial organizations I know of are non-profits which means their 990 forms are on http://www.guidestar.org and their 5500 forms, if they have pensions, are on http://www.efast.dol.gov. Going over this data two things stand out.

1)  These places pay pretty well judging by the salary of the highest paid official from each:

act-pays

2) It is 401(k) plans in which they have the vast majority of their pension money:
act-pensions

and those two organization that do maintain supplemental Defined Benefit plans have them very well funded:
act-aaa

act-asppa

The full spreadsheet with separate workbooks is here and the forms are included with the Think Tanks in dropbox.

20 responses to this post.

  1. Posted by Anonymous on December 31, 2016 at 7:38 pm

    Off topic but, I think, at least the next four years will be just that. Apparently Putin and Trump have decided to spend Valentine’s Day together and their significant others aren’t invited #turkishbath !

    Reply

  2. Posted by Anonymous on December 31, 2016 at 11:58 pm

    We have to be mindful as to what we post, at Trump’s request our IP address are being monitored by Putin’s operatives.

    Happy New Year EST and get ready for the fireworks coming this year!

    Reply

  3. Posted by Anonymous on January 1, 2017 at 8:16 am

    Ah it’s finally here, the new year. Americans it’s not a time to despair rather a time to dare – the GOP to screw us out of our Medicare and SS. Because just like their proposed repeal of the ACA so can whatever they do be undone in four years! If they think there was backlash over the ACA then the future does indeed look bright!!

    Reply

  4. Posted by Sandy Rich on January 1, 2017 at 9:45 am

    The history of funding of DB plans sponsored by financial institutions is strong. For those financial institutions that did not close and buyout their plan members, through lump sums or annuities, they remain well funded. As an example, the only plan that the PBGC ever took over that paid all promised benefits, as of February 2016, was Lehman. I would speculate that financial institutions are run by individuals that understand liabilities better than most and that the after tax financing cost of an underfunded DB plan (PBGC Variable Rate Premiums and Funding costs) are among the most expensive liabilities for a financial institution.
    Happy New Year.
    Sandy Rich, former CNR, PBGC

    Reply

  5. Posted by NY on January 1, 2017 at 11:58 am

    John — It would be interesting to hear your take on the merits of NJ swearing off collecting taxes on larger slugs of retirement income beginning today. Is there not a retirement-funding-crisis brewing, which is likely to involve collecting more rather than less taxes?

    http://www.northjersey.com/story/news/new-jersey/2016/12/31/5-tax-cuts-take-effect-nj-jan-1/96018808/

    Reply

    • Posted by Anonymous on January 1, 2017 at 12:53 pm

      Seriously and what about Trump tax cut for, primarily, the rich. That should go all long way towards closing the Fed pension crisis!

      https://www.google.com/amp/s/amp.businessinsider.com/us-government-7-trillion-pension-shortfall-2016-4?client=ms-android-huawei

      Reply

      • Posted by dentss dunnigan on January 1, 2017 at 2:07 pm

        Lets be realistic if Trump gets the changes to the tax code he seems to want, the elimination of property tax deductibility New Jersey will be forced to lower property taxes if they don’t property values will most definitely will fall 20% to 50% ….

        Reply

        • Posted by Anonymous on January 1, 2017 at 2:32 pm

          Sell now, tick tock.

          Reply

          • Posted by dentss dunnigan on January 1, 2017 at 4:55 pm

            Not really ,here’s the beauty of this …the standard deduction will be raised to 25 to 30K so it just gives more incentive to move out of high taxed states to a lower taxed state and the fed will be sucking money out of democrats strongholds ….brilliant

          • Posted by Anonymous on January 1, 2017 at 6:01 pm

            Until the next election!

            Oh guess your not living in NJ?

    • Not sure if this comes from me knowing too much or too little about the NJ budget process but I see all those lost taxes that come out of the budget (estate and sales along with the retirement income parts) to get the gas tax that goes for transportation projects will mean that NJ comes up with other ways to pay for ongoing expenses with more debt meaning more downgrades before more defaults.

      Reply

      • Posted by NY on January 2, 2017 at 12:25 pm

        Interesting…perhaps I’m naive, but my guess is that the state’s budget-planners aren’t actively planning for default, but instead believe that they’re buying time within the current political constraints and have their fingers crossed that something will turn up along the way (either Uncle Fed, or maybe just some good old-fashioned inflation to melt the fixed-rate debt pile and no-longer-COLA’d pensions, which would be something of a miracle cure for the ailment)…

        Reply

  6. Posted by NY on January 2, 2017 at 3:55 pm

    Very interesting piece in today’s WSJ on the 401k: http://www.wsj.com/articles/the-champions-of-the-401-k-lament-the-revolution-they-started-1483382348

    (If you see a message from WSJ asking you to pay, type the headline into google and click the first result: “The Champions of the 401(k) Lament the Revolution They Started”)

    “The great lie is that the 401(k) was capable of replacing the old system of pensions,” says former American Society of Pension Actuaries head Gerald Facciani, who helped turn back a 1986 Reagan administration push to kill the 401(k). “It was oversold.”

    Reply

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