Pension actuaries operate at the intersection of mathematics, regulation, and long-term financial stewardship. Every valuation cycle brings pressure: tightening funding rules, shifting interest rate environments, increasingly complex plan designs, and clients who want clarity on numbers that rarely sit still. The work demands precision, but communication demands simplicity.
ChatGPT will not replace your actuarial judgment or sign off on an ACJA certification. What it can do is compress the time you spend drafting, explaining, researching, and preparing. The right prompt turns a two-hour documentation task into a twenty-minute review. It helps you stress-test your thinking, scaffold a client memo, or work through exam concepts before a sitting.
Below are 35 prompts organized across seven core areas of pension actuarial practice. Each includes a ready-to-use template with bracketed placeholders you replace with your real data. Use them as starting points and refine them to match your firm's voice and your clients' needs.
Section 1: Plan Valuations and Funding
1. Funding Status Summary for Plan Sponsor
"Act as an experienced pension actuary. Summarize the funding status of a [plan type] defined benefit plan with a funded ratio of [funding ratio]%, an Actuarial Value of Assets of $[AVA amount], and an Actuarial Accrued Liability of $[AAL amount]. The plan uses the [actuarial cost method] funding method. Explain what this funding position means for the plan sponsor's near-term contribution requirements and long-term obligations in plain, non-technical language suitable for a CFO who is not an actuary."
This prompt produces an executive-ready funding narrative that bridges the gap between your technical output and the sponsor's board-level discussions, saving you the drafting cycle on a recurring deliverable.
2. Contribution Range Analysis
"I am valuing a [plan type] pension plan. The minimum required contribution under [IRC Section 430 / ERISA] is $[minimum amount] and the maximum deductible contribution is $[maximum amount]. The plan sponsor is asking whether contributing $[proposed contribution] makes sense given their [cash flow situation / tax position / funded status goal]. Outline the key trade-offs and considerations they should weigh, including funded status trajectory, at-risk plan rules, and excise tax exposure."
This helps you rapidly structure the talking points for a contribution strategy meeting without starting from scratch on the analytical narrative.
3. Sensitivity Analysis on Discount Rate
"For a defined benefit plan with an Actuarial Accrued Liability of $[AAL amount] calculated at a discount rate of [current discount rate]%, estimate and explain the directional impact on the AAL if the discount rate decreases to [lower rate]% and increases to [higher rate]%. Walk through the conceptual mechanics of duration and interest rate sensitivity in pension liabilities, and explain why the board should care about this range."
This accelerates your preparation for a rate sensitivity discussion and ensures the explanation you bring to the client is conceptually airtight before you attach numbers.
4. Asset Smoothing Method Comparison
"Compare the [market value of assets] approach versus the [actuarial value of assets with X-year smoothing] approach for recognizing investment gains and losses in a pension plan valuation. The plan experienced a [gain/loss] of $[amount] in the most recent plan year. Explain the effect each method would have on the actuarial value of assets, the funded ratio, and the required contribution for plan year [year]. Include the regulatory constraints under IRC Section 430 on permissible smoothing corridors."
Smoothing method decisions have real contribution and funded status consequences. This prompt helps you draft the method comparison section of your valuation report or an accompanying client memo.
5. Explaining the Unit Credit Cost Method
"Explain the Projected Unit Credit actuarial cost method to a finance team that is new to defined benefit plan accounting under [ASC 715 / IAS 19]. Use a simple worked example with a participant aged [age], a final average pay benefit formula of [benefit formula], an assumed retirement age of [retirement age], and a discount rate of [discount rate]%. Show how the service cost and interest cost components are determined for the current year."
When a new finance team member or audit counterpart needs a grounding in PUC methodology, this prompt produces a clear, illustrated explanation you can review, refine, and share rather than writing one from scratch.
Section 2: Regulatory Compliance and Filings
6. PBGC Premium Filing Overview
"Summarize the PBGC flat-rate and variable-rate premium requirements for a single-employer defined benefit plan for plan year [year]. The plan has [number of participants] participants, an unfunded vested benefits amount of $[UVB amount], and a prior year credit balance of $[credit balance]. Walk through the premium calculation steps and flag any planning opportunities or deadlines the plan sponsor should be aware of."
PBGC premium calculations involve several moving parts and penalty traps. This prompt creates a structured briefing you can use to prepare for a sponsor conversation or double-check your own premium estimate.
7. Schedule SB Narrative Preparation
"Help me draft the explanatory notes for Schedule SB of Form 5500 for a [plan type] defined benefit plan. The plan's funding target attainment percentage is [FTAP]%, the plan is [in / not in] at-risk status, and the plan sponsor made a contribution of $[contribution amount] for plan year [year]. The key actuarial assumptions are a discount rate of [discount rate]% and a mortality table of [mortality table]. Write a factual, compliance-appropriate narrative consistent with ERISA and IRS requirements."
Schedule SB narratives require precise, legally appropriate language. This prompt jumpstarts the drafting process while flagging the specific data points you need to populate.
8. At-Risk Plan Status Determination
"Explain the criteria under IRC Section 430(i) for a single-employer defined benefit plan to be considered 'at-risk.' The plan I am reviewing has a funding target attainment percentage of [FTAP]% and was [in / not in] at-risk status in either of the two preceding plan years. Walk through whether this plan meets the at-risk threshold, what additional liabilities must be calculated if it does, and the contribution and benefit restriction consequences that apply."
At-risk determinations trigger a cascade of additional calculations. This prompt helps you verify your analysis and prepares you to explain the implications to a plan sponsor facing this status for the first time.
9. Benefit Restriction Analysis Under IRC 436
"The adjusted funding target attainment percentage (AFTAP) for my plan is [AFTAP]% as of [valuation date]. Walk me through which benefit restrictions under IRC Section 436 are triggered at this level. Specifically, address whether [lump sum payments / benefit increases / shutdown benefits] are restricted, what the plan administrator must do to notify participants, and what steps the plan sponsor could take to avoid or lift restrictions."
IRC 436 restrictions carry fiduciary and participant notification obligations that non-actuaries often underestimate. This prompt produces a structured restriction analysis you can review and tailor before bringing it to the administrator.
10. Funding Relief and ARPA Provisions Summary
"Summarize the pension funding relief provisions under the American Rescue Plan Act of 2021 that are relevant to a single-employer defined benefit plan with a funding shortfall. Focus on the extended amortization period, the interest rate corridor changes, and any elections the plan sponsor must make. The plan's current funding shortfall is $[shortfall amount] and the plan sponsor is considering whether to elect relief. Outline the long-term funded status trade-offs."
ARPA funding relief elections are irreversible and have multi-decade consequences. This prompt helps you build the analytical narrative for a sponsor who needs to understand what they are choosing between.
Section 3: Client Communication and Reporting
11. Valuation Results Letter Draft
"Draft a valuation results letter to the plan sponsor of a [plan type] defined benefit plan for plan year [year]. Key results: funded ratio [funded ratio]%, actuarial accrued liability $[AAL], actuarial value of assets $[AVA], minimum required contribution $[minimum], maximum deductible contribution $[maximum], and recommended contribution $[recommended]. The tone should be professional and clear, suitable for a plan sponsor whose finance background is strong but who is not an actuary. Flag the two or three most important action items."
The valuation results letter is often the primary client-facing document from the annual cycle. This prompt gives you a strong structural draft to refine rather than a blank page to fill.
12. Investment Committee Funding Briefing
"Prepare a briefing for an investment committee on the current funded status and contribution outlook for a defined benefit plan. The plan's funded ratio is [funded ratio]%, investment return for the prior year was [investment return]% against an expected return of [expected return]%, and the liability discount rate is [discount rate]%. Address how the asset performance and interest rate environment are affecting funded status and what the committee should monitor over the next 12 to 24 months."
Investment committees need actuarial context translated into asset-side language. This prompt bridges the actuarial and investment perspectives in a format suited to committee minutes.
13. Explaining a Contribution Increase to Leadership
"The required contribution for [plan sponsor]'s defined benefit plan has increased by $[increase amount] compared to the prior year. The primary drivers are [list of drivers: e.g., lower-than-expected investment returns, liability increase due to rate decrease, demographic experience]. Draft a concise explanation for senior leadership that contextualizes this increase, compares it to peer plan experience where possible, and outlines two or three options to manage contribution volatility going forward."
Unexpected contribution increases generate difficult internal conversations. This prompt helps you craft a narrative that educates rather than just informs, reducing the chance of reactive plan decisions.
14. Participant Communication: Benefit Statement Explanatory Language
"Write plain-language explanatory text for a defined benefit pension benefit statement for participants in a [plan type] plan. Explain what the accrued benefit of $[monthly benefit] per month starting at age [normal retirement age] means, how the benefit was calculated using the formula [benefit formula], what happens if the participant leaves before vesting at [vesting schedule], and what early retirement reduction factors of [reduction factor] would apply if they retire at age [early retirement age]."
Participant communications are a fiduciary obligation. This prompt helps you produce accessible, accurate benefit statement language that reduces participant confusion and inbound HR calls.
15. Annual Funding Notice Draft
"Draft an Annual Funding Notice for a single-employer defined benefit plan as required under ERISA Section 101(f). The plan has [number of participants] participants, a funding target attainment percentage of [FTAP]%, assets of $[assets], and liabilities of $[liabilities] for plan year [year]. Include the required disclosure of PBGC guarantee limits, the plan's funding zone status, and the required actuarial assumptions. Use regulatory-appropriate language and note any items that may need legal review before issuance."
Annual Funding Notices carry specific statutory content requirements. This prompt generates a compliant draft structure that you and your legal team can refine before distribution.
Section 4: Assumption Setting
16. Mortality Table Selection Rationale
"I am selecting a mortality table for a defined benefit plan valuation for plan year [year]. The plan has [number of participants] participants predominantly in the [industry] industry with an average age of [average age]. Compare the [Pri-2012 tables / MP-2021 projection scale] to the [RP-2014 tables / Scale AA] on the basis of life expectancy, liability impact, and IRS acceptability under IRC Section 430. Draft the assumption rationale I would include in the actuarial report to justify the selected table."
Mortality assumption changes are among the most consequential adjustments an actuary can make to a valuation. This prompt helps you structure the documented rationale required under ASOP No. 35.
17. Discount Rate Benchmark Analysis
"Help me build a benchmark analysis supporting the discount rate assumption of [discount rate]% for a defined benefit plan under [GAAP / ERISA funding rules]. The plan's benefit payment cash flows have a duration of approximately [duration] years. Summarize how the [Citigroup Pension Discount Curve / Merrill Lynch Above Median curve / corporate bond yield curve] supports or contradicts this rate, and draft the methodological narrative I would use to document this assumption in the actuarial report."
Discount rate documentation must withstand audit scrutiny. This prompt produces a defensible written rationale aligned with ASOP No. 27 documentation standards.
18. Salary Scale Assumption Review
"The defined benefit plan I am valuing uses a salary scale assumption of [salary scale]% per year. Recent plan experience shows actual salary increases of [actual increase]% per year over the past [number] years. Perform a high-level experience analysis comparing assumed versus actual salary growth, assess whether the current assumption remains reasonable given current economic conditions and the plan sponsor's HR projections of [HR projection]%, and draft a recommendation memo for the assumption review file."
Salary scale assumptions directly affect projected benefit obligations and service costs. This prompt structures an experience study summary that satisfies the documentation requirements under ASOP No. 25.
19. Turnover and Retirement Rate Assumption Development
"I need to set turnover and retirement rate assumptions for a [plan type] defined benefit plan. The plan covers [number] active participants with an average age of [average age] and average service of [average service] years. The plan sponsor's industry is [industry]. Describe a reasonable process for developing these assumptions from experience data, identify external benchmarks I should reference, and draft the assumption rationale language consistent with ASOP No. 25 requirements."
Decrement assumptions are often set judgmentally when credible plan experience is limited. This prompt outlines a defensible methodology and helps you articulate the assumption rationale clearly.
20. Assumption Change Impact Summary
"The following actuarial assumptions are changing for the [year] valuation compared to [prior year]: discount rate from [old rate]% to [new rate]%, mortality table from [old table] to [new table], and salary scale from [old scale]% to [new scale]%. Estimate the directional and approximate magnitude of each change's impact on the Actuarial Accrued Liability and the required contribution. Draft a summary of assumption changes suitable for the actuarial report and a shorter version suitable for the plan sponsor's board."
Assumption change summaries are mandatory disclosure items. This prompt helps you produce layered communications: one for the technical file and one for the client.
Section 5: Risk Management and Asset-Liability Management
21. Liability-Driven Investing Overview for Investment Committee
"Prepare an educational overview of liability-driven investing (LDI) for the investment committee of a defined benefit plan sponsor. The plan has a funded ratio of [funded ratio]%, a liability duration of [liability duration] years, and currently allocates [equity allocation]% to return-seeking assets and [fixed income allocation]% to fixed income. Explain what LDI is, how a glidepath strategy would work for this plan, and what a shift to a [target allocation]% fixed income allocation would mean for funded status volatility and expected contribution requirements."
LDI conversations require connecting actuarial liability metrics to investment portfolio construction. This prompt builds the conceptual bridge your investment committee needs to make an informed allocation decision.
22. Interest Rate Risk Stress Test
"Run a conceptual stress test on a defined benefit plan's funded status under the following interest rate scenarios: base case [base rate]%, down 100 bps to [low rate]%, and up 100 bps to [high rate]%. The plan's Actuarial Accrued Liability at the base rate is $[AAL] and the asset portfolio has a duration of [asset duration] years while the liability duration is [liability duration] years. Estimate the funded status impact of each scenario and identify the funding and investment implications the plan sponsor should plan for."
Interest rate stress tests are foundational to ALM governance. This prompt structures the scenario analysis narrative you would present to an investment or finance committee.
23. Pension Risk Transfer Feasibility Assessment
"The [plan sponsor] is considering a pension risk transfer (PRT) strategy for their defined benefit plan. The plan has [number] terminated vested participants with total liabilities of approximately $[TV liabilities] and [number] retirees with total liabilities of approximately $[retiree liabilities]. The plan is [funded ratio]% funded. Outline the key steps and considerations in evaluating a PRT transaction, including buy-out versus buy-in structures, insurer selection criteria, the role of the fiduciary, approximate cost premium over GAAP liabilities, and IRS/DOL requirements."
PRT engagements are increasingly common but involve significant fiduciary and regulatory complexity. This prompt helps you frame the feasibility assessment in a way that is both comprehensive and accessible to a sponsor exploring this option for the first time.
24. Longevity Risk Quantification
"Help me quantify and explain longevity risk for a defined benefit plan with [number] retirees and a current retiree liability of $[retiree liability]. The plan uses the [mortality table] mortality table with [projection scale] improvement scale. If actual mortality improves by [X]% more than projected, estimate the approximate increase in the retiree liability and the funded status impact. Explain what options exist to hedge or transfer longevity risk, including longevity swaps and annuity buyouts."
Longevity risk is one of the most difficult defined benefit risks to quantify for non-technical audiences. This prompt produces a structured, intuitive explanation that supports a productive risk management conversation.
25. Surplus Management Strategy Memo
"A defined benefit plan has a funded ratio of [funded ratio]% and is generating actuarial gains. The plan sponsor is asking whether to reduce contributions, increase benefits, or maintain the surplus as a buffer. Draft a memo outlining the regulatory constraints on using surplus (including IRC Section 4980 reversion tax, ERISA surplus rules, and the impact on future PBGC premiums), the strategic considerations for each option, and a recommended approach given the plan sponsor's stated goal of [goal]."
Overfunded plans present a different but equally complex set of decisions. This prompt structures the surplus management memo that plan sponsors in a strong funded position often need.
Section 6: Plan Design and Amendments
26. Benefit Formula Comparison Analysis
"Compare the cost and benefit adequacy implications of the following two defined benefit plan formulas for [plan sponsor]: Formula A: [Formula A description, e.g., 1.5% of final average pay per year of service] and Formula B: [Formula B description, e.g., 1.0% of career average pay per year of service with an annual COLA of CPI up to 3%]. The workforce has an average age of [average age], average service of [average service] years, and average salary of $[average salary]. Estimate relative normal cost rates, long-term benefit adequacy, and the workforce segments most affected by each formula."
Plan design comparisons require actuarial cost modeling and workforce analysis. This prompt structures the comparison framework and drafts the narrative around relative cost and benefit adequacy.
27. Plan Freeze Impact Assessment
"The plan sponsor of a [plan type] defined benefit plan is considering freezing benefit accruals effective [freeze date]. The plan currently has [number of active participants] active participants, an Actuarial Accrued Liability of $[AAL], and a funded ratio of [funded ratio]%. Analyze the impact of a hard freeze on: (1) future service cost elimination, (2) the projected benefit obligation under GAAP, (3) required contributions over the next five years, (4) PBGC premiums, and (5) workforce and retention considerations. Include transition risks and the fiduciary steps required."
Plan freezes appear financially straightforward but carry layered actuarial, fiduciary, and workforce implications. This prompt generates a comprehensive impact framework before you run the formal cost study.
28. Cash Balance Plan Design Considerations
"Explain the key actuarial and regulatory features of a cash balance defined benefit plan design to a plan sponsor currently operating a [traditional final average pay / career average pay] plan. Cover crediting rate options and their implications for interest crediting risk under the [market rate of return / whipsawing] rules, the minimum benefit requirements under the hybrid plan regulations, the comparative cost structure versus the current plan, and the workforce communication challenges in a plan conversion. Use the plan sponsor's workforce profile: average age [average age], average service [average service] years."
Cash balance conversions are technically demanding and require clear client education. This prompt produces the educational memo that precedes a formal design engagement.
29. Early Retirement Window Actuarial Analysis
"The plan sponsor of a [plan type] defined benefit plan is considering offering an early retirement window to employees aged [age range] with at least [minimum service] years of service. Estimated [number] participants would be eligible. The plan's funded ratio is [funded ratio]%. Analyze the actuarial cost of the window, including the incremental liability created by subsidized early retirement benefits, the PBGC premium implications, the risk of adverse selection, and the IRC Section 436 restriction risks if the window reduces the funded ratio below [threshold]%."
Early retirement windows look attractive to sponsors managing headcount but carry significant actuarial and regulatory risk. This prompt builds the analytical foundation for your window cost memo.
30. Lump Sum Window Feasibility Review
"A plan sponsor is asking about offering a lump sum window to [terminated vested participants / retirees currently receiving monthly payments] in their defined benefit plan. There are approximately [number] eligible participants with a total liability of $[liability amount]. The plan's funded ratio is [funded ratio]%. Summarize the legal permissibility under current IRS and DOL guidance, the actuarial cost relative to the annuity liability, the PBGC premium reduction potential, the funded status risk if investment returns fall short, and the administrative steps required to execute a compliant offering."
Lump sum windows involve IRS, PBGC, and DOL considerations that have evolved significantly over the past decade. This prompt generates a structured feasibility review you can present before committing to a full engagement.
Section 7: Professional Development and Exam Preparation
31. EA-2 Exam Concept Drill: Funding Target Calculation
"Act as a pension actuarial exam instructor preparing me for the EA-2 (Segment B) exam. Explain the funding target calculation under IRC Section 430 from first principles. Cover the three segment rate structure, the use of the 24-month average segment rates versus the spot segment rates, the at-risk loading methodology, and the interaction with the funding shortfall. Then give me a practice problem involving a plan with [number] participants and the following benefit stream: [describe benefit stream]. Walk through the solution step by step."
EA-2 candidates often struggle with the layered complexity of IRC 430 funding mechanics. This prompt creates an on-demand tutoring session that can be repeated with different parameter sets to build calculation fluency.
32. ASOP Review and Application
"Summarize ASOP No. [ASOP number] and explain how it applies to the following situation in my actuarial practice: [describe practice situation]. Identify the specific sections of the ASOP most relevant to this situation, the documentation requirements imposed, and any areas where professional judgment is required. Flag any potential compliance concerns I should consider."
ASOPs are dense documents that are easier to apply when you can quickly surface the relevant sections. This prompt turns a general ASOP review into a situation-specific compliance checklist.
33. Continuing Education Case Study Preparation
"Help me prepare a case study for a continuing education presentation on the topic of [topic, e.g., pension risk transfer, ARPA funding relief elections, cash balance plan design]. The audience is [enrolled actuaries / HR benefits professionals / CFOs] with [level of technical background]. Structure the case study with a plan sponsor background, a decision problem, two or three alternative approaches with actuarial and financial trade-offs, and a recommended approach with rationale. Include three discussion questions for the audience."
Well-structured case studies are the backbone of effective CE presentations. This prompt generates a complete case study framework you can populate with real or hypothetical plan data.
34. Peer Review Checklist Development
"Create a technical peer review checklist for the annual actuarial valuation of a [plan type] single-employer defined benefit plan under [ERISA / GAAP / both]. The checklist should cover: data reasonableness checks, assumption reasonableness and documentation, liability calculation methodology, asset calculations, contribution determination, required disclosure items, and ASOP compliance. Format it as a numbered checklist with a brief description of what the reviewer should verify for each item."
Peer review is a professional requirement under ASOP No. 41 and firm quality control standards. This prompt generates a comprehensive checklist template you can adapt to your firm's specific review workflow.
35. Explaining the Actuarial Profession to a Career Changer
"I am a [pension actuary / actuarial student] who wants to explain the pension actuarial profession to someone considering a career change from [prior profession, e.g., accounting / finance / engineering]. Describe what pension actuaries do day to day, the exam and credentialing pathway through the Society of Actuaries and the Joint Board for the Enrollment of Actuaries, the skills that transfer well from [prior profession], the compensation trajectory, and what makes the profession intellectually rewarding. Be honest about the challenging aspects as well."
Mentoring and recruiting strong candidates into the profession is part of every senior actuary's informal responsibilities. This prompt drafts the honest, compelling career overview that can spark a productive mentoring conversation.
Getting the Most Out of These Prompts
A few principles that make these prompts more effective in practice:
Provide context upfront. ChatGPT performs significantly better when you give it the plan's relevant background before asking a question. Paste in funded status numbers, participant counts, and key assumptions at the start of a conversation rather than feeding them in piecemeal.
Iterate on tone. The default output will be accurate in structure but may need calibration for your firm's voice or a specific client's sophistication level. Add instructions like "make this more concise" or "assume the reader has no actuarial background" to refine the output.
Never skip professional review. These prompts are drafting accelerators, not compliance substitutes. Every piece of client-facing communication, regulatory filing narrative, and assumption rationale that comes out of ChatGPT must be reviewed, verified, and signed off by a credentialed actuary who is responsible for the work.
Build a prompt library. When you find a prompt variation that works well for your practice, save it. Over one valuation cycle you can build a firm-specific library that standardizes your drafting process and makes onboarding new actuarial staff significantly faster.
The complexity of defined benefit pension work is not going away. But the time spent translating that complexity into clear documentation, client communications, and defensible analysis can be substantially reduced with the right tools. These 35 prompts are a starting point. The real value comes from adapting them to the specific plans, sponsors, and situations that define your practice.
Want all 35 prompts in a convenient, copy-paste format? Get the complete AI Prompt Toolkit for this profession →
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