Applying Actuarial Assumptions
Certain pension objects use actuarial assumptions to calculate actuarial factors:
Process Where Actuarial Assumptions are Used |
How Actuarial Assumptions are Used |
---|---|
Early and late retirement factors |
Determines an early or late retirement factor. Actuarially-derived early and late adjustments are, in turn, incorporated into 415 limits definitions to adjust a limit for early or late commencement. |
Optional forms of payment |
Converts the normal form of a benefit to optional forms. |
Actuarial factor alias |
Determines factors for converting from one payment form to another. The factors can be used in several places. One important usage of the actuarial factor alias is within employee-paid benefit definitions, where the system uses the factor to convert the projected employee account balance to an annuity. |