The American Academy of Actuaries (AAA) has published a new issue brief on COVID-19 and its impact on pension plans.
- There is much uncertainty about the impacts of COVID-19 on both near-term and assumed long-term future mortality.
- The effects of the pandemic on the economy, on workforce patterns, and on plan sponsors’ budgets are likely to be far more financially significant to most pension plans, at least in the near term, than the effect on mortality. There is expected to be wide variance among the plans themselves, regardless of whether they are private sector, multiemployer, or
- As plan experience and medical research unfold, actuaries will be able to incorporate this information as they consider both short- and long-term effects on actual plan experience and future economic and demographic assumptions.