← Legal Glossary
Best Estimate Requirement
Definition
A statutory standard under Section 1393 requiring that the actuarial assumptions used for withdrawal liability represent the actuary's own best estimate of the plan's anticipated future experience. This is a subjective test designed to ensure the actuary exercises independent professional judgment rather than bowing to pressure from plan trustees or others.
Examples
- •The respondent argued that employers can challenge assumptions in arbitration by showing they do not represent the actuary's best estimate—for instance, if the actuary was pressured by plan trustees.