LIBOR Posted October 4, 2001 Posted October 4, 2001 For large plans early retirement subsidies can be "funded for" utilizing retirement decrements, and for small groups the impact of someone taking the subsidy can get factored into the gain/loss for the year - my question is if you have all inactive terminated vested lives, is there any reason you wouldn't assume everyone takes early retirement when eligible ?
Guest Keith N Posted October 4, 2001 Posted October 4, 2001 I think that is certainly logical. It's an actuarial assumption just like any of the others. If it's reasonable to assume they will take it, then I would recognize it in the funding.
david rigby Posted October 4, 2001 Posted October 4, 2001 Keith is correct. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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