As part of the 2023 revisions to ASOP 4, the Actuarial Standards Board will require a new disclosure, LDROM, that will affect future actuarial valuations. NASRA, NCPERS, NCTR, and NIRS formed a workgroup to develop the ASOP 4 Toolkit: Measuring Pension Obligations and LDROM to help pension funds communicate the new requirements of ASOP 4, avoid misunderstanding and misuse of the new disclosure, and communicate the benefits of a well-diversified investment portfolio. Over 30 public pension directors, senior staff, actuaries, and communications experts (listed below) participated in the workgroup and their work shaped the ultimate outcome.
The toolkit, which has been endorsed by GFOA, includes three products:
The first product is a fact sheet that presents a clear and simple overview of LDROM—what it is and what it isn’t—and provides appropriate context to frame the correct use of the disclosure for stakeholders of the pension plan, including policymakers, system participants and the general public.
The second product is a set of suggested language for public pension actuarial valuations. Following these guidelines will ensure that valuations conform to ASOP 4 and provide context for the measure. Accurate and reliable valuations will maximize stakeholder understanding and the impact on taxpayers’ contributions of various liability measures.
The third product is a set of frequently asked questions on investment diversification and other important topics. These will help pension fund stakeholders with guidance on special considerations for Risk Sharing Plans.
Overall, the ASOP 4 Toolkit: Measuring Pension Obligations and LDROM is an essential resource for pension funds to educate policymakers and others on the best use of this new disclosure to help avoid misunderstandings concerning pension funding.
Evolution and Growth: How Public Pension Plans Have Diversified Their Investments Amid Changing Markets
A report from the National Institute on Retirement Security (NIRS) and Aon examines the changes public pension plan investing has undergone throughout the twenty-first century.
Pensionomics 2025: Measuring the Economic Impact of Defined Benefit Pension Expenditures
Pensionomics 2025: Measuring the Economic Impact of Defined Benefit Pension Expenditures finds pending powered by U.S. private and public sector defined benefit pensions contributed significantly to the economy. In 2022, retiree spending of public and private sector pension benefits generated $1.5 trillion in total economic output, supporting 7.1 million jobs across the nation.
In partnership with AARP and NRTA, NIRS has developed a series of state-by-state infographic fact sheets regarding the public employee and teacher retirement systems across the country.
These fact sheets present a snapshot of these retirement systems along with key data from NIRS research and other sources.
