Will the proposed UCRS asset transfer to LANL (and subsequently LNL) improve or worsen the hypothetical Funded Ratio of UCRS?
Based on the data you have provided, shedding the poorer Funded Ratio of LANL should make UCRS somewhat better off (in the sense of being more overfunded); shedding both labs should make UCRS substantially better off. If the proposed final asset transfer raises UCRS to the hypothetical Funded Ratio described above, no further questions need be raised. UC could easily demonstrate that the impact of the asset transfer will be actuarially beneficial to UCRS. Unless it does so, we must assume that the actual asset transfer will be harmful in the sense that the resulting Funded Ratio of UCRS would be lower than the hypothetical Funded Ratio described above. It might even be lower than the present Funded Ratio of a UCRS (which includes LANL), or low enough to bring the LANL plan up to full funding if the present overfunded component of UCRS were harvested for this purpose. To the extent that the potential benefits of the final asset transfer are foregone by UCRS, we must ask why members in a
