This project helps to demonstrate how pension actuaries must keep a constant eye on new laws. The pension industry is constantly bombarded with new laws which force them to alter policies and procedures. Because of the huge number of laws, it is difficult for all employees to fully understand every law. During my stay at the Principal, I discovered that many passages are interpreted differently by different people. I also uncovered some details through my research that other employees were not aware of.
Because of this complexity, it is often necessary to assign to one person, such as myself, the job of understanding and becoming an expert on the law. Hence, these laws obviously result in an increased expense for insurance companies, and because of their complexity, an increased confusion on the part of their clients.
I feel that the passage of MPPAA was a very necessary and overdue addition to ERISA. Before its passage, employers of multiemployer plans could withdraw without assuming responsibility for the benefits promised to their employees. Also, the provisions for accelerated funding of plans in financial distress has resulted in more financially stable plans. Although many people may complain about the increased paperwork and research involved in the passage of MPPAA, the bottom line is that it helps to protect the little people which is very necessary in today\u27s world of large corporations
