ProVal Tip: Let ProVal Calculate Late Retirement Benefits For You!
Did you know…
Late retirement benefit formula components compare the value of a benefit at decrement to the actuarially increased normal retirement benefit.
For ages prior to normal retirement age, the late retirement component will return the value of the plan’s benefit, allowing you to simplify your benefit formulas.
For example: (Benefit * ERF) #MAX (Benefit_at_NRD * Late_Inc) simplifies to Late_Ret_Benefit * ERF
Late retirement benefit formula components are easy to set up and eliminate the need to create extra components to do the comparison. In the benefit formula component, specify the component type as late retirement, the accrued benefit (which can be a single component or a subformula), the normal form, and normal retirement age. Set actuarial equivalence in valuation assumptions under the conversion factors topic.
Additional Resources
More information on this can be found in ProVal Help using the following links:
