Froogled By:: Elias Makere, FSA, MAAA
Last Updated:: 0/0/0000

ASOP 4
(MEASURING PENSION OBLIGATIONS AND DETERMINING PENSION PLAN COSTS OR CONTRIBUTIONS)
SECTION to Section 2
(COMMENTS & RESPONSES ON SECTION 2 OF THE EXPOSURE DRAFT)

Commentary on Section 2

ASOP 4 | Commentary Section 2.8 | COMMENT ON SECTION 2.8

Section 2.8, Contribution Allocation Procedure
Comment	Response
One commentator suggested changing the second sentence in section 2.8 to state, “The procedure uses an actuarial cost method and may use an asset valuation method, an amortization method, and/or an output smoothing method.”	The reviewers disagree and made no change as the use of “and/or” is inconsistent with ASOP style since the use of “or” incorporates “and.”

ASOP 4 | Commentary Section 2.9 | COMMENT ON SECTION 2.9

Section 2.9, Cost Allocation Procedure
Comment	Response
One commentator suggested changing the second sentence in section 2.9 to state, “The procedure uses an actuarial cost method, and may use an asset valuation method and/or an amortization method.”	The reviewers disagree and made no change as the use of “and/or” is inconsistent with ASOP style since the use of “or” incorporates “and.”

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