QUESTION: How are late retirement factors computed?

ANSWER:. ProAdmin computes late retirement factors in a Benefit Formula Component where the component type is Late Retirement.  In the section Actuarial equivalence for late retirement, after Normal Retirement Date and Actuarial Equivalence assumptions are selected, Calculation performed provides parameters to determine how the factors will be computed and used. Two examples are 

• Calculation performed Annually using factors from NRD uses the basis at the calculation date and late retirement factors as ratios of an immediate annuity at Normal Retirement Date to a deferred annuity from Normal Retirement Date to the calculation date.  Click here for the details.

• Calculation performed Annually using factors from beginning of plan year uses the basis at the calculation date and late retirement factors are ratios of an immediate annuity at the beginning of the plan year to a deferred annuity from the beginning of the plan year to the calculation date. Click here for the details.