Pension plans must use “the kind of actuarial assumptions a reasonable actuary would use” when calculating the payments owed to workers who choose optional benefit formats instead of traditional, single-life pensions, the US Court of Appeals for the Eleventh Circuit held Tuesday, becoming the second federal appeals court to read a “reasonableness” requirement into the Employee Retirement Income Security Act’s pension calculation rules.
“Actuarial equivalence connotes a degree of connection to empirical grounding and realistic expectations about ...