24 CAR § 20-406 – Cash flow projection valuation

(a) If the local plan has fifty (50) or more participants, the local plan may show actuarial soundness using a cash flow projection valuation.
(b) This valuation will project the assets, future income, and future benefit obligations of the local plan.
(c) The assumptions used in this valuation shall be based upon the same assumptions used by the Arkansas Fire and Police Pension Review Board for regularly scheduled valuations.
(d) The cash flow projection valuation must show that the current assets projected with future income will always be sufficient to cover all benefit obligations.
(e) A cash flow projection valuation is not required to be done on a regular basis, but will only be completed when requested by the local plan and at the expense of the local plan.