Floor offset plan

[SSRRS]

Hi,

AN Employee terminated with an  ACRUED Benefit of $844. His DC account balance is 44,000. He is 45 years old. The 844 is due at age 62 (NRA). Since the AB of 844

is due at age 62, is it proper to discount the 844 (AB) TO HIS CURRENT AGE OF 45 (will use plan equivalence for this). This gives an accrued benefit of 263 at his current age of 45. Next, to convert the dc account to annuity based on the APR at his current age of 45, ie 235 monthly. And then finally to use the dc annuity  of 235 to reduce the AB of 265? Thank you very much

[Effen]

You need to talk to the plan's actuary.

[Calavera]

The application of offset should be spelled out in the DB plan document. For example, it may say to project the DC account to age 65, convert to annuity at age 65 and offset your DB benefit.