Timing on Preparing Table Updates

Key Benefit ConceptsAbout Us, Actuarial

Can’t prepare until information is known as of fiscal year end (roll-forward blog already that we can use/update?

A common question we get from clients is when they can expect to receive their table updates for the year. As some background, “table updates” are tables provided to you in years when a full valuation is not prepared. Basically, the liabilities and other figures in the tables are rolled forward one year from what was shown in the most recent valuation so that your auditors can use it for financial reporting. A component of the valuation and table updates is the measurement date. Typically, the measurement date is the same as the reporting date or it is 12 months prior.

Not only will the measurement date affect what information must be requested, but it will determine when they can be completed. Those with a measurement date as of the reporting date (e.g., June 30, 2022 measurement date for reporting on June 30, 2022 financial statements) cannot be finished until after the reporting date. Oftentimes, this is approaching the time when you and your auditors may be meeting to begin preparing for the year’s financial reporting. Therefore, you may interpret this as meaning the table updates are “late” or behind schedule. In reality, everything is on-time and unfolding as it should.

The reason why the table updates cannot be completed until after the measurement date is because the actuary needs to know the benefit payments that were paid for the most recent fiscal year, the appropriate discount rate to use as of the measurement date, and any other trust information, if applicable. Using June 30, 2022 as an example, the most recent fiscal year would be July 1, 2021 – June 30, 2022. As a result, you will likely hear from your actuary in July or August in regards to this information and should receive your table updates well before your financial reporting deadline.