Mandatory rated ofr actuarial equivalence

[ombskid]

Is there a mandatory interest and mortality rate when converting from one form of benefit to another i.e. convert a plan's normal form life with 10 yrs guaranteed to life only?

[Andy the Actuary]

On the 415 side

[ombskid]

For someone who is nowhere near 415, there is no mandatory interest rate or mortality table for converting benefits?

[Guest KennyH]

What does the plan document say?

[rcline46]

The rate is called 'actuarial equivalence' and is defined in the plan document, can only be changed by amendment, and in some cases is grandfathered or may take a year to 'phase in'. So it is not 'pick you own this time' if that is what you are trying to determine.

[david rigby]

There is no requirement to use any mortality table and/or interest rate. Some plans use a table of conversion factors, usually expressed as a percentage.

But......it must be defined in the plan document.

[ombskid]

Thanks

Plan does have actuarial equivalence - I was making sure there was no mandatory override like the 415 rates