Calculating Involuntary Cash Out

[Guest jfreeborn]

I am wondering how the involuntary cash out limits are calculated. Is the lump sum value reduced to a present value at the participant's date of termination or when he would reach NRA? The reason I am asking is b/c I want to know if it is even possible for a $179.50/month benefit payable at age 65 could possibly be under the $3,500/$5,000 amount. The participant terminated from the employer in 1987 and he reached 65 in 2010.

Thanks!

[Andy the Actuary]

179.50 valued at age 42 in 1987~ $2,500 using 71GAM mortality and 8% interest.

[Guest jfreeborn]

179.50 valued at age 42 in 1987~ $2,500 using 71GAM mortality and 8% interest.

Thank you very much!