Dougsbpc Posted July 7, 2009 Posted July 7, 2009 Suppose you have a DB with a flat excess benefit formula that provides 25% of FAC plus 18.75% in excess of covered comp all multiplied by YOP / 35 years. The maximum disparity percentage is the lesser of the base % or 35 multiplied by a factor from a table based on the participant's SS retirement age. This amount is further reduced if the normal form of benefit is anything other than a straight life annuity. For example, life + 20 yr certain has an adjustment factor of 78%. Does anyone know what the adjustment factor is for a 100% J & S normal form? I seem to recall 66%?
Andy the Actuary Posted July 7, 2009 Posted July 7, 2009 Normalize according to 401(a)(4) regulations 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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