La. Admin. Code tit. 58 § XVII-303

Current through Register Vol. 50, No. 11, November 20, 2024

Section XVII-303 - Actuarial Equivalent

A. As provided under R.S. 11:2031(2), actuarial equivalent shall be defined using the following assumptions.

1. Interest shall be compounded annually at the rate of 7.50 percent per annum.

2. Annuity rates shall be determined on the basis of RP-2000 Combined Healthy table set back three years for males and two years for females.

B. Effective July 1, 2016, as provided by R.S. 11:2031(2) 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 and unadjusted for females, unisexed based on 15 percent males and 85 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 and unadjusted for females, unisexed based on 15 percent males and 85 percent females for retirees and 85 percent males and 15 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 15 percent males and 85 percent females.

5. For DROP Account Balance lifetime annuity conversions, mortality rates shall be based on the RP-2000 Healthy Annuitant Tables set forward 1 year for males and unadjusted for females and projected with mortality improvement to 2030 using Scale AA, unisexed based on 15 percent males and 85 percent females with interest at 6 percent per annum.

C. Effective July 1, 2018, as provided by R.S. 11:2031(2) actuarial equivalent shall be defined by using the following assumptions.

1. Interest shall be compounded annually at the rate of 6.75 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 and unadjusted for females, unisexed based on 15 percent males and 85 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 and unadjusted for females, unisexed based on 15 percent males and 85 percent females for retirees and 85 percent males and 15 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 15 percent males and 85 percent females.

5. For DROP Account Balance lifetime annuity conversions, mortality rates shall be based on the RP-2000 Healthy Annuitant Tables set forward 1 year for males and unadjusted for females and projected with mortality improvement to 2030 using Scale AA, unisexed based on 15 percent males and 85 percent females with interest at 5.75 percent per annum.

D. Effective July 1, 2019, as provided by R.S. 11:2031(2) actuarial equivalent shall be defined by using the following assumptions.

1. Interest shall be compounded annually at the rate of 6.50 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 and unadjusted for females, unisexed based on 15 percent males and 85 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 and unadjusted for females, unisexed based on 15 percent males and 85 percent females for retirees and 85 percent males and 15 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 15 percent males and 85 percent females.

5. For DROP Account Balance lifetime annuity conversions, mortality rates shall be based on the RP-2000 Healthy Annuitant Tables set forward 1 year for males and unadjusted for females and projected with mortality improvement to 2030 using Scale AA, unisexed based on 15 percent males and 85 percent females with interest at 5.5 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, § XVII-303

Promulgated by the Department of Treasury, Registrars of Voters Employees Retirement System, LR 451209 (9/1/2019).

AUTHORITY NOTE: Promulgated in accordance with R.S. 11:2031(2).