FAQ 745: Optional Forms - Calculating lump sums & joint and survivor annuities

Problem: I am trying to do a benefit distribution for a defined benefit plan. Is there a report or utility in ASC that can help me do this?

Solution: The Reports > Actuarial > Participant Termination/Optional Forms menu will give you several options to calculate lump sums and alternate forms of payment for plan participants who are terminating or retiring. Once in the menu: 1. Enter information in the participant's employee record that is not already stored for the individual who is to be paid out. For example, spouse's date of birth, compensation & hours history, and date of termination. Make sure you have the correct mortality & interest assumptions coded under Actuarial Equivalence & 417(e) in plan specifications. Run Calculations > Valuation if any of the added information changes benefits & present values. 2. In the Reports > Actuarial > Participant Termination/Optional Forms menu, select Individual employees and select the reports you want to print. We recommend always printing the Parameters report so you know what options were chosen, and print these to a PDF file for easy checking and electronic delivery. You can also choose to export the employee optional form amounts and factors to an .xls file. Enter the Calculation Date as the date the person will be paid out or retire. A Find Employees box will appear with a list of the employees in the file. Choose the employees needing calculations from the list. 3. Select OK to print the reports. Refer to the DB Reference Manual Chapter 12: Participant Termination/Optional Forms for option details and calculation examples.