nancy Posted January 18, 2000 Posted January 18, 2000 We are in the process of taking over a case from another actuary. One of the owners has been receiving monthly benefits since 4/1/96 (his RBD). He began drawing the full 415(B) limit actuarially increased to age 71. Each year since then, the actuary has increased the monthly payment to reflect the change in dollar limit and an actuarial increase due to his age as of January 1. Is this correct, or should the actuarial increase for age cease when benefit payments begin (4/1/96)?
nancy Posted January 20, 2000 Author Posted January 20, 2000 He is still working. We agree, we're not sure why he was granted actuarial increases after he began drawing.
Guest Posted January 20, 2000 Posted January 20, 2000 Is the owner still working or has he actually seperated from service? I'm pretty sure the COLA is ok as long as the Plan Document provides for the increases, but I'm not sure why he would be granting the actuarial increase after the benefit has commenced.
david rigby Posted January 20, 2000 Posted January 20, 2000 Hold on. There is a fishy smell to this. Keith is corect; it depends a great deal on what the plan says. It also depends on how the benefit formula is defined. I think we need more info to know for sure. 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.
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