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."
Instead, it said that all retirement benefits shall be at least the "actuarial equivalent
" of double the amount in a member's PERS account.
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.R.C.
(The court suggested that the DOL's suspension-of-benefits regulations may have been beyond the scope of the agency's implementing authority under the statute, but did not have to rule on that issue, because the plan itself required the suspension notice.) 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."
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.
The actuarial reduction of the limit on annual benefits for early retirement may not be reduced below (1) $90,000 (indexed amount for 1992 is $112,221) for benefits beginning on or after the date the participant reaches age 69., (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.