DB Val with Assumed Retirement before NRA

[Guest billkalke]

We are trying to do a one person DB val on Relius using an assumed retirement age that is earlier than the NRA under the plan.

So far, as we have it set up, the system is treating the projected benefit at assumed retirement age as if it were also payable at that age rather than at NRA.

My colleague (much more experienced in Relius than I) believes there is no simple way to do what we want without a lot of hand calculation and many system overrides.

I would like to hear from anyone who has accomplished this in Relius with some hints as to how they proceeded.

[Dennis Povloski]

I've never done this myself, but I do use Relius for small plan DBs. Out of curiosity, what are you trying to accomplish by assuming early retirement? It would be interesting to see what we would need to do to bend the system to our will.

[Guest billkalke]

Dennis -

This is a plan I've just taken over - so for starters I'm trying to reproduce the prior actuary's results. After that, I will put some thought into what assumptions I will be using.

I iwll not be surprised to find out that there are good early retirement capabilities in Relius that we are not using well.

[SoCalActuary]

You can probably get close by using ancillary benefit valuation of early retirement.

To do so, you create a table of early retirement probabilities used in your actuarial assumptions for funding and an early retirement reduction table used in your benefits section, and you change your valuation to value the benefits using the probability table you entered.

For example, if you want to show expected retirement at 62, when the plan says 65, you would establish the early probabilities at age 62 as 100%.

The reduction table for early retirement would produce the benefit you would pay if retirement is early.