End of Year Valuation

[Guest Doogie61]

I could use some help on doing and EOY valuation....

When doing and EOY val...is the FT calculated as of the beginning of the plan year then adjusted to the end of year with effective interest?

And, is the 150% cushion applied to the FT at the BOY or the EOY adjusted FT?

TNC as I see would simply be calcualted as of the EOY on that type of val.

What are you guys doing?

[SoCalActuary]

I could use some help on doing and EOY valuation....

When doing and EOY val...is the FT calculated as of the beginning of the plan year then adjusted to the end of year with effective interest?

And, is the 150% cushion applied to the FT at the BOY or the EOY adjusted FT?

TNC as I see would simply be calcualted as of the EOY on that type of val.

What are you guys doing?

Mr. D... AN EOY takes the benefit earned to the beginning of the plan year and values the future payments that will result from that benefit, all measured at the end of the year, using the proper mortality tables for the plan year and the interest yield curve for the valuation date.

You should also consider attending one of the EA-2 workshops to get a better understanding of actuarial valuations. Contact ASPPA, SOA, Infinite Actuary or one of the better instructors like Rick G or Dave F to start your study process.