FAQ 894: Fully Subsidized Early Retirement

Problem: ASC shows the assumed retirement age in the Actuarial Assumptions and Method Report as the Normal Retirement Age. Is there a way to indicate that the funding age is the early retirement age?

Solution: If the plan's early retirement eligibility and benefits have already been coded and the participant's early retirement dates have already been calculated, you can skip steps 1) to 4) below. Otherwise, these are the general steps to answer your question. 1) General \ Identification \ RETIRE screen - code the normal retirement age as the plan's normal retirement age. 2) General \ Identification \ ANCILELG screen - code the early retirement age provisions as the age to which you are funding. Set the "Vest at Early Retirement" field to "Yes" if the plan provides for full vesting at Early Retirement. 3) General \ Benefits \ OTHERBEN screen - set the "Early Retirement Benefit" field to "No Reduction". 4) Set active participant status to "C". When you run Calculations > Valuation, "C" status participants will have their early retirement dates recalculated (along with all other dates except for their entry dates). Note, for any active participants with a Normal Retirement Date (NRD) before the plan's valuation date, their original Normal Retirement Date (NRD) will be calculated and stored. Change these participants back to status code "A", re-enter the NRD as the day after the valuation date, and run Calculations > Valuation. In general, you should not change the Date NRA Attained for these participants. 5) Funding \ FUNDMETH screen - set the "Assumed RA" field to "Early". With this change, after running Calculations > Valuation, the Summary of Assumptions report should print that the funding age is the early retirement age.