La. Admin. Code tit. 58 § XIX-103

Current through Register Vol. 50, No. 9, September 20, 2024

Section XIX-103 - Actuarial Equivalent

A. As provided under R.S. 11:1402(8), actuarial equivalent shall be defined using the following assumptions.

1. Interest shall be compounded annually at the rate of 7 1/2 percent per annum.

2. Annuity rates shall be determined on the basis of RP2000 combined healthy table set back three years for males and two years for females and uninsured.

B. Effective July 1, 2012, as provided by R.S. 11:1402(8) actuarial equivalent shall be defined by using the following assumptions.

1. Interest shall be compounded annually at the rate of 7.5 percent per annum.

2. Mortality rates shall be based on the RP-2000 combined healthy table unisexed based on 65 percent males and 35 percent females for retirees and 35 percent males and 65 percent females for beneficiaries.

C. Effective October 1, 2015, as provided by R.S. 11:1402(8) actuarial equivalent shall be defined by using the following assumptions.

1. Interest shall be compounded annually at the rate of 7.25 percent per annum (except as provided below).

2. For single life option factors, mortality rates shall be based on the RP-2000 combined healthy tables unisexed based on 35 percent males and 65 percent females.

3. For Joint Life option factors, mortality rates shall be based on the RP-2000 combined healthy tables unisexed based on 65 percent males and 35 percent females for retirees and 35 percent males and 65 percent females for beneficiaries.

4. For disability award lifetime equivalences, mortality rates shall be based on the RP-2000 disabled lives tables unisexed based on 35 percent males and 65 percent females.

5. For drop balance life annuity conversions, mortality rates shall be based on the RP-2000 combined healthy table set back 3 years and unisexed based on 100 percent males and 0 percent females with interest at 6 percent per annum.

D. Effective October 1, 2016, as provided by R.S. 11:1402(8) actuarial equivalent shall be defined by using the following assumptions.

1. Interest shall be compounded annually at the rate of 7.00 percent per annum (except as provided below).

2. For single life option factors, mortality rates shall be based on the RP-2000 combined healthy tables set forward 1 year for males with no set forward for females and unisexed based on 40 percent males and 60 percent females.

3. For joint life option factors, mortality rates shall be based on the RP-2000 combined healthy tables set forward 1 year for males with no set forward for females and unisexed based on 65 percent males and 35 percent females for retirees and 35 percent males and 65 percent females for beneficiaries.

4. For disability award lifetime equivalences, mortality rates shall be based on the RP-2000 disabled lives tables unisexed based on 40 percent males and 60 percent females.

5. For drop balance life annuity conversions, mortality rates shall be based on the RP-2000 healthy annuitant table set back 1 year and projected to 2030 using scale AA, and unisexed based on 100 percent males and 0 percent females with interest at 6 percent per annum.

E. Thereafter, these assumptions shall be adopted by resolution of the board, based on recommendations of its actuary.

La. Admin. Code tit. 58, § XIX-103

Promulgated by the Board of Trustees of the Assessors' Retirement Fund, LR 39:2188 (August 2013), Amended LR 421959 (11/1/2016).

AUTHORITY NOTE: Promulgated in accordance with R.S. 11:1402(8), 11:1404(A), and R.S. 49.950 et seq.