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Floor offset plan


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Hi,

AN Employee terminated with an  ACRUED Benefit of $844. His DC account balance is 44,000. He is 45 years old. The 844 is due at age 62 (NRA). Since the AB of 844

is due at age 62, is it proper to discount the 844 (AB) TO HIS CURRENT AGE OF 45 (will use plan equivalence for this). This gives an accrued benefit of 263 at his current age of 45. Next, to convert the dc account to annuity based on the APR at his current age of 45, ie 235 monthly. And then finally to use the dc annuity  of 235 to reduce the AB of 265? Thank you very much

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You need to talk to the plan's actuary.

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

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