Actuarial Equivalence - ProAdmin 320

Actuarial Equivalence reference tables contain the interest rate and mortality assumptions used to calculate the conversion factors for optional payment forms. They may define actuarial equivalence for the plan or alternate conversion factors for individual Payment Forms. They may also be used for late retirement calculations. There are no limits to the number of entries in the library.

Name is a text field in which to enter a description of the Actuarial Equivalence reference table. This may be any descriptive phrase, including spaces.

Interest may be specified as a Static rate (or rates) or Based on an Interest Rate Table. There are three (3) options for Static rate:

Constant: interest will be static based on the specified rate. Enter the Constant rate as a decimal (e.g., 0.08 for 8.0%).
Database field: interest will be static based on a constant rate from a field within the data. Only scalar numeric fields in the current Project are included in the list of available fields.
Segment rates: interest rates will be constant with the duration structure of PPA segment rates. Enter the 1st (less than 5 years after the calculation date), 2nd (at least 5 years but less than 20 years after the calculation date) and 3rd (at least 20 years after the calculation date)segment rates as decimals (e.g., 0.08 for 8%).

If interest is Based on an Interest Rate Table it will be variable based on the Interest Rate Table rate(s) as of the commencement date. If a single table is to be used for all participants, select from the library of Interest Rate Tables unhidden in the current Project or click the $image\backdoor_button.gif$ button to create a new library entry or modify an existing one. Otherwise, for the interest rate table to vary by groups of participants as identified by values of a coded database field, select <rates by coded database field> and then click the Params button and fill in the additional parameters required for this option. Select the appropriate Coded database field from the list of all coded fields defined in the Data Dictionary (and unhidden in the current Project). ProAdmin displays a spreadsheet containing a column with the heading Database Code and each code of the selected field appears in this column. To Enter a table for each code, click on the code’s row in the Interest Rate Table column and then click the down arrow that appears. Choose the applicable table from the list. Click the Edit Rates button to create a new table or change an existing one.

Check to Apply PPA phase-in from this GATT Interest Rate Table if the actuarial equivalence interest rates should phase-in from GATT interest rates to segment rates in 20% increments beginning with the 2008 plan year (where the plan year is defined in the Plan Attributes of the Plan Definitions). If phase-in is checked, select the GATT interest rate from the list of scalar interest rate tables unhidden in the current Project; all segment, spot, duration and PBGC-style interest rate tables will be excluded from the list of available choices.

In the Mortality section of the dialog box, Member selects the mortality table applicable to members from the Mortality Rates reference table library, and Beneficiary selects the mortality table applicable to beneficiaries from the Mortality Rates reference table library.

The checkbox to Use the current applicable mortality for 417(e) is available (unghosted) when a dynamic IRS applicable mortality table for 417(e) (excluding zero pre-commencement tables) is selected for both the member and beneficiary mortality, and the same table is selected for both. If selected, the mortality will automatically switch to use the appropriate table for calculation dates beginning 1/1/2008 and later.

If Use zero mortality in any deferral period is checked, any payment forms with a deferral (including social security level income forms), for which these actuarial assumptions are used, will use zero mortality during the deferral period for the primary annuitant's mortality and the beneficiary's mortality (if any). Similarly, if the box is checked and these actuarial equivalence assumptions are referenced in a late retirement benefit component, then the late retirement calculations will reflect zero mortality during the deferral period between the normal retirement age and the calculation age.

The checkbox to Freeze mortality at date in field is available (unghosted) when a dynamic or fully generational table is selected for either member or beneficiary mortality. If selected, the mortality projection will be frozen at the applicable mortality rates in effect at the date defined by the selected scalar database field.

The checkbox to Use prior day interest & mortality for 1st plan year day commencement allows you, in the case of calendar year plans, to calculate benefits commencing on January 1 based on the interest rates and mortality that were effective for the immediately preceding December 31. The parameter works similarly for non-calendar year plans. Note that this option affects the interest rate and the dynamic or generational mortality year, but not any age determinations.