Cowden Associates, Consultants and Actuaries

Actuarial

Cowden Associates, Inc. provides the full range of actuarial consulting and valuation services for various defined benefit (qualified and nonqualified) pension plans, as well as retiree medical and life obligations.

Whether one wishes to explore starting a new program or modifying an existing program, we are uniquely qualified to provide the full range of services. We blend actuarial experience and benefit design with full knowledge of how these programs impact corporate cash flow and financial statements to arrive at a value added product.

Valuation consulting and support services for defined benefit pension plans (qualified plans)

Cowden Associates, Inc. is often requested to perform consulting services regarding the possible establishment of a defined benefit pension plan. These plans can take on a variety of forms, ranging from a straightforward final average pay program to a cash balance plan. In this regard, we provide all of the needed information for a plan sponsor to evaluate the possible implementation of such a program, including cash-flow, expense, liability and estimated participant benefits.

Once a plan is established, we prepare the annual required funding valuation reports, including financial data required, review of a sampling of retirement benefit calculations, PBGC premium calculations, normal and routine audit support for FAS 135, 87,132,158, and the required Schedules B (Form 5500).

Our support in this area extends further than routine services. We are constantly working with plan sponsors on various projections and analyses, as well as “what-if” scenarios. By being proactive, we are able to identify various design changes and assumption alterations to minimize issues and prepare the organizations for any pending impacts. We also participate in analyst calls to explain issues in detail and address concerns about pension issues and related matters, including possible accounting, cash-flow and balance sheet matters.

Valuation consulting and support services for defined benefit pension plans (nonqualified plans)

As noted above, we perform all of the steps required for a plan sponsor to evaluate the possible implementation of a nonqualified defined benefit plan. These services include plan designs, potential plan participants, expenses, cash flow and estimated participant benefits.

Unlike qualified plans, nonqualified defined benefits plans (primarily Supplemental Executive Retirement Plans, or SERPs) do not require annual funding valuations, due do require the same data for financial statement purposes that is used for qualified plan purposes. As such, we prepare the required financial statement data.

Companies often do not realize the importance of managing their SERP liabilities. We are often contacted to provide plan redesign consulting services. This area includes the full range of altering plan formulas, actuarial assumptions and benefit offsets, as well as attempting to maximize qualified plan benefits.

Valuation consulting and support services for retiree medical and life obligations (nonqualified plans – OPEB)

Companies are required to account for their retiree medical and life obligations (commonly referred to as OPEB). In a manner consistent with defined benefit pension plans. As a result, our typical engagement in this area includes the preparation of the required accounting information, as well as cash-flow forecasts. As noted above, however, our assistance in this area goes well beyond the traditional valuation services.

As companies are faced with growing number of retirees, escalating healthcare costs, and financial statement pressures, we often are called upon to provide various consulting services to assist in attempting to minimize or contain this issue. Our assistance in this area crosses over from the traditional valuation services and becomes a benefits consulting arrangement.

We can perform the following services and more.

  • Develop Annual Contribution Requirements
  • Review Funded Status
  • Preparation of Information for Auditor Requirements
  • Preparation of Information for Government Forms
  • Actuarial Certification of Methods and Assumptions
  • Develop Annual Expense and Financial Disclosures
  • FAS 87, 132, 158, 106, and 112
  • GASB 25, 27, 43 and 45
  • SOP 92-6
  • Annual Retirement Benefit Statements
  • Comprehensive Participant Benefit Statements
  • Benefit Change Communications
  • Funding Notices
  • Summary Plan Descriptions
  • Legislative and Compliance Assessment
  • Regulatory Monitoring
  • Preparation/Filing of Government Forms
  • Cash/Expense Projections
  • Asset/Liability Modeling
  • Budget Forecasts
  • Retirement Strategy
  • Plan Design
  • Strategic Planning
  • Benchmarking
  • Certification of Retirement Benefits
  • Signature Ready Forms
  • Relative Value Disclosures
  • Lump Sum Calculations
  • Cash Management
  • Employee Communications
  • Replacement Plan
  • Annuity Placements