January 17, 2008
SEC INTERPRETATIVE BULLETIN NO. 01-08
| TO | : | 1. Pre-Need Corporations |
| 2. Pre-Need Actuaries | ||
| 3. Pre-Need Validators | ||
| 4. Pre-Need External Auditors | ||
| RE | : | Pre-Need Rule 31, as Amended |
This Bulletin is issued by the Securities and Exchange Commission to guide pre-need corporations, pre-need actuaries/validators and pre-need external auditors in the implementation of Rule 31 (I) (A) (11-13), as amended, on Accounting Standards for Pre-Need Plans and Pre-Need Uniform Chart of Accounts. aCSHDI
1. Does the Pre-Need Reserve (PNR) cover the liabilities for education plan, life plan and pension plan?
Yes. The PNR (or the reserve for education plan, life plan and pension plan) represents the present value of future pre-need benefits less present value of future trust fund contributions. The PNR of the three (3) plan types should be maintained separately as they differ in the treatment of assumptions. The amount indicated as PNR shall be the same as that stated in the Actuarial Valuation/Validation Report (AVR) and Audited Financial Statements (AFS) with the required disclosures. The valuation/validation date of the AVR must coincide...
