Actuarial Equivalent

Actuarial Equivalent

A measurement in which the payment streams on two, different insurance policies or other plans have the same present value under a given set of actuarial assumptions. It is used to compare two plans with each other.
References in periodicals archive ?
Thus, the portion of the participant's accrued benefit that is settled by the payment of a specified single-sum amount is implicitly determined as the actuarial equivalent of that single-sum amount.
Therefore, the trustees obtained a state court ruling that an ascending payment method, where each year's payment increased to 120 percent of the prior year's annuity payment, was the actuarial equivalent of the straight-line method.
Private health plans would be required to cover at least the actuarial equivalent of the benefit package provided by fee for-service Medicare.
The proposal provides catastrophic coverage in two parts: beneficiaries would pay the actuarial equivalent of 20 percent of the cost of their drug spending from $2,000 to $6,000 a year, and the plan would pay 80 percent.
On the other hand, if the sales proceeds are divided so the surviving spouse takes the actuarial equivalent of his or her life estate and the remaindermen take the actuarial equivalent of their remainder estate, the surviving spouse will be deemed under I.
Instead, the court based its finding that Monks was not entitled to damages on (1) case law holding that ERISA does not remedy procedural violations with damage awards, (2) the fact that the proposed Treasury regulations supporting Monks' arguments were never finalized and (3) the theory that Monks forfeited nothing, because his continued accruals for service beyond normal retirement age "overcomes any claimed entitlement to the actuarial equivalent of benefits [he] would have received if he had retired at age 65.
The company will support various benefit designs including the standard drug benefit, the actuarial equivalent standard benefit, the basic alternative benefit, and the enhanced alternative benefit plans.
As an actuarial equivalent, it also represents an amount of money that can be expected to grow sufficiently and replace the other future form of benefit.
2) $75,000 for benefits beginning on or after age 55, or (3) the actuarial equivalent of $75,000 at age 55 for benefits beginning before age 55.