PVAB for Deceased Participant After Commencement of RMD

[§#$%!]

Particpant, whose RMD started in 2011, died in 2012.

How do I determine the PVAB payable to beneficiaries in 2013?

Do I use AE to determine the PVAB at death and have it accrue interest (AE) to a payment date without regards to mortality?

Sorry for being vague but not sure how to post this question.

Thanks

[david rigby]

First, does the plan define the death benefit as PVAB? any alternative forms of distribution?

But, more to the point, does the plan answer your quesiton?

[§#$%!]

Yes death ben is pvab. I'll have to look at the alternative forms.

[SoCalActuary]

Some argue that there is no remaining pvab, except for any annuity forms that specifically elected it.

By their argument, the annuity started under one of the plan's acceptable forms of payment as a retirement benefit.

If married, that had to be a J&S unless otherwise elected and approved.

If the election was for a guaranteed payment for a period certain, then the remaining present value is the annuity stream, discounted at the appropriate rate. If the form was a J&S, then the remaining payments to the spouse was the annuity stream, and it would take a special set of language to settle the lump sum value of the spouse's benefit payments.

I do not like this position, because the participant was probably still considered an employee.