Actuarial method and assumptions used in health welfare benefit plans

This Employee Benefit Plan Audit Quality Center (EBPAQC) primer was developed to provide Center members a general understanding of the actuarial method and assumptions used in determining plan benefit obligations in defined benefit health and welfare plans under FASB ASC 965, Employee Benefit Plan Accounting—Health and Welfare Benefit Plans.

This primer addresses:

• Plan benefit obligations

• The actuarial method

• Actuarial valuation

• Actuarial valuation inputs

• Actuarial assumptions

• The actuarial valuation reports