What is the valuation date used for the actuarial submission?

What is the valuation date used for the actuarial submission?

• A. January 1 of the current year
• B. December 31 of the prior year
• C. December 31 of the current year
• D. June 30 of the prior year

Answer: (B)

The valuation date is set at the end of the prior year. This means the actuarial submission uses data as of December 31 of the year before the submission year, capturing the complete prior-year experience and providing a stable basis for funding, reserves, and actuarial estimates. For example, if the submission is due in 2024, the valuation date would be December 31, 2023. Using December 31 of the current year would rely on data that isn’t fully known yet, while January 1 of the current year starts with a new period of data, and a mid-year date like June 30 of the prior year doesn’t reflect a full year’s experience.

The valuation date is set at the end of the prior year. This means the actuarial submission uses data as of December 31 of the year before the submission year, capturing the complete prior-year experience and providing a stable basis for funding, reserves, and actuarial estimates. For example, if the submission is due in 2024, the valuation date would be December 31, 2023. Using December 31 of the current year would rely on data that isn’t fully known yet, while January 1 of the current year starts with a new period of data, and a mid-year date like June 30 of the prior year doesn’t reflect a full year’s experience.