Section XXI-103 - Actuarial Equivalent (Louisiana Code of Regulations)

§ XXI-103. Actuarial Equivalent

A. Effective July 1, 2013 and continuing through June 30, 2015, as provided by R.S. 11:1588(A)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.

a. For single life option factors, mortality rates shall be based on the RP-2000 combined healthy tables unisexed based on 70 percent males and 30 percent females. For joint life option factors, mortality rates shall be based on the RP-2000 combined healthy tables unisexed based on 95 percent males and 5 percent females for retirees and 5 percent males and 95 percent females for beneficiaries

b. For disability award lifetime equivalences, mortality rates shall be based on the RP-2000 disabled lives tables unisexed based on 70 percent males and 30 percent females.

B. Effective July 1, 2015 and continuing through June 30, 2016, as provided by R.S. 11:1588(A)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.

a. For single life option factors, mortality rates shall be based on the RP-2000 combined healthy tables unisexed based on 70 percent males and 30 percent females. For joint life option factors, mortality rates shall be based on the RP-2000 combined healthy tables unisexed based on 95 percent males and 5 percent females for retirees and 5 percent males and 95 percent females for beneficiaries.

b. For disability award lifetime equivalences, mortality rates shall be based on the RP-2000 disabled lives tables unisexed based on 70 percent males and 30 percent females.

C. Effective July 1, 2016 and continuing so long as not amended by resolution of the board, as provided by R.S. 11:1588(A) 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.

a. For single life option factors, mortality rates shall be based on the RP-2000 combined healthy table with white collar adjustment with no setback for males and with 1 year setback for females and unisexed based on 80 percent males and 20 percent females. For joint life option factors, mortality rates shall be based on the RP-2000 combined healthy tables with white color adjustment with no setback for males and with a 1 year setback for females and unisexed based on 95 percent males and 5 percent females for retirees and 5 percent males and 95 percent females for beneficiaries.

b. For disability award lifetime equivalences, mortality rates shall be based on the RP-2000 disabled lives tables set back 5 years for males and set back 3 years for females unisexed based on 80 percent males and 20 percent females.

D. After July 1, 2016, the interest and mortality rate assumptions shall be as adopted by resolution of the board. The board shall consult with its actuary with regard to the proper rates to use.

E. For purposes of comparing the benefits of the forms of distribution with the maximum limitation on benefits, the applicable mortality tables described in IRC § 417(e)(3)(B) shall be used.

(Promulgated by the Board of Trustees of the District Attorneys Retirement System, LR 41:2313 (November 2015), Amended LR 43877 (May 2017).)

AUTHORITY NOTE: Promulgated in accordance with the provisions of R.S. 11:1658-1659 and R.S. 49:950 et seq.

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