Determine Mortality Table Used

[mctoe]

My apologies if this is a dumb question from a non-actuary.  Is there a way to figure out what mortality table was used in determining PV of governmental defined pension plan?  I have the following info:

• Age at cut-off = 41.86
• Pension start age: 45.66
• Accrued annual pension benefit at cut-off age = $40,639.32
• PV of $1 pension = $12.2619
• PV pension = $498,315

Thank you.

[david rigby]

Well, it's possible an actuary can solve this, mostly by trial and error, BUT... there is missing information, such as:

·       Does the plan already define a mortality table for this purpose?  If so, it may be public information.

·       Is there a known method for determining the discount rate(s)?

·       Are any ancillary benefits included in the PV?

Most importantly, are you saying the person is NOW 41.86 and the pension STARTS at 45.66? (That's a pretty low age for commencement.)

[mctoe]

Thank you for the response. 

• I have tried to find out what mortality table was used with no success.
• The discount rate used was 5.30%
• Not sure what you mean by ancillary benefits

Yes, the ages are correct.  Police defined benefit plan that provides a benefit after 20 years of service.

[Effen]

Many variables that can change the value.  "ancillary benefits" mean things like death benefits.  If the participant dies before age 45.66, is anything payable to a beneficiary?  If so, how much?  If not, then you might add additional discounts for mortality.  

Also, what is the normal form of payment?  In some states the normal form is a J&50, in which case you might also need to know the spouses age.  

You can also get variations due to rounded ages or time periods.

Assuming Life Only w/ exact ages: 

If I use 83 GAM male, no pre-retirement mortality, I get 12.49 for a factor.

71 GAM Male, no pre-retirement mortality, i get 12.046

RR 01-62 (94 GAR), no pre mort, I get 13.096.  w/ pre-retirement mort I get 12.6029

2018 417(e) Mort, no pre mort, I get 13.507

All this tells me they are probably using some form of something fairly old, maybe 71 or 83.  The document would tell you, and it should be publicly available, but it might be a process to request it and read it. 

 

[mctoe]

Thank you Effen, very helpful.