Guest JM123 Posted March 11, 2013 Posted March 11, 2013 Does anyone know where I can find, or how to derive, the factors to convert a balance to a 50% J&S annuity based on the UP-1984 tables?
SoCalActuary Posted March 11, 2013 Posted March 11, 2013 This is a simple problem for most actuarial students. But what is the motivation? Also, what is the interest rate to be used? Finally, why pick a mortality table for the nearly dead, when most people live much longer than the UP84 table?
Guest JM123 Posted March 11, 2013 Posted March 11, 2013 Thanks for your response. Are these available anywhere? I have a QJSA form that provides factors for estimating the conversion of an account balance to either a 75% and 100% J&S annuity, based on various combination of participant/spouse ages. I also need the 50% (at various age combinations) for the plan's QJSA, and we do not intend to obtain quotes from an insurance company.
david rigby Posted March 11, 2013 Posted March 11, 2013 I agree with SoCal. Any actuary can do this; most prefer to be paid for their services. Also, an experience pension actuary will ask the same question SoCal asked: what is the puprose? It's best to answer that question before chossing an interest rate and/or mortality table. A follow-up question will be, what do you mean by "balance"? I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Guest JM123 Posted March 11, 2013 Posted March 11, 2013 It sounds like this information is not readily available, such as in an IRS pub. We have a very small DC plan that is subject to the QJSA requirements. We need to give them a form, but Corbel's includes columns for 75% and 100% J&S, but not 50%. For the 50%, the form has a space for the exact monthly annuity payment, presumably based on a quote from an insurer or pursuant to an agreement. We do not intend to seek any quotes from insurers but to instead satisfy the written explanation regulations by providing a chart so the participant and spouse can estimate their 50% J&S.
Hojo Posted March 11, 2013 Posted March 11, 2013 Have you ever heard of Google? There are 500 calculators free on the internet. https://www.pensionbenefits.com/calculators/cal_main.jsp?sub_item=aecal
Guest JM123 Posted March 11, 2013 Posted March 11, 2013 No, I've never heard of Google. I try to go to the source rather than some website that may or may not be reliable. But thank you for sending the link, this appears to be helpful.
tymesup Posted March 12, 2013 Posted March 12, 2013 If you have the 75 and 100 J&S factors, you can derive the 50 J&S factor.
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