Calculation of late retirement benefit

[ac]

I am working on a benefit calculation for a plan that is frozen. A participant is retiring at age 68 (normal retirement age is 65). The plan's definition of actuarial equivalence is pre-ret mortality- none, post-ret mortality - 84 UP, pre- and post-ret interest is 6%. Which method should be used to calculate the actuarial adjusment for late retirement?

1. (a65/a68)*(1.06)^3

2. N65/N68

I guess it comes down to how to interpet the definition of post-retirement actuarial equivalence. Does the post-retirement assumptions apply to post normal retirement age or the period following actual retirement from employment?

[SoCalActuary]

If the participant died before starting the benefit payment, what happens?

Is the benefit gone/forfeited, either wholly or in part?

If no forfeiture on death, and benefit is essentially equivalent to PVAB, then method 1 is used.

Don't forget that the late retirement adjustment for 415 limits does not use 6%, although you said this

was a frozen plan, so it probably does not matter.