Source: https://www.law.cornell.edu/cfr/text/29/appendix-B_to_part_4050
Timestamp: 2017-04-25 12:51:11
Document Index: 304507557

Matched Legal Cases: ['art 4050', '§ 4050', 'art 4050', 'art_4050', 'art 4050', '§ 4050', 'art 4050', '§ 4050', '§ 4050', '§ 4050']

29 CFR Appendix B to Part 4050, Examples of Benefit Payments for Missing Participants Under §§ 4050.8 Through 4050.10 | US Law | LII / Legal Information Institute
CFR › Title 29 › Subtitle B › Chapter XL › Subchapter E › Part 4050 › Appendix B_to_part_4050 29 CFR Appendix B to Part 4050, Examples of Benefit Payments for Missing Participants Under §§ 4050.8 Through 4050.10
Appendix B to Part 4050 - Examples of Benefit Payments for Missing Participants Under §§ 4050.8 Through 4050.10
The provisions of §§ 4050.8 through 4050.10 are illustrated by the following examples.
Participant M from Plan B (see Example 2 in Appendix A of this part) is located. M's spouse is ten years younger than M. M elects to receive benefits in the form of a joint and 50 percent survivor annuity commencing at age 62.
(1) M's designated benefit was $41,356. The unloaded designated benefit was $41,056. As of Plan B's deemed distribution date (and using the missing participant annuity assumptions), the present value per dollar of annual benefit (payable monthly as a joint and 50 percent survivor annuity commencing at age 62 and reflecting the actual age of M's spouse) is $4.7405. Thus, the monthly benefit to M at age 62 is $722 ($41,056 / (4.7405 × 12)). M's spouse will receive $361 (50 percent of $722) per month for life after the death of M.
Participant P is a missing participant from Plan C, a plan that allows elective lump sums upon plan termination. Plan C's administrator pays a designated benefit of $10,000 to the PBGC on behalf of P, who was age 30 on the deemed distribution date.
(2) The select and ultimate interest rates on Plan C's deemed distribution date were 7.50 percent for the first 20 years and 5.75 percent thereafter. Using these rates and the blended mortality table described in paragraph (2) of the definition of “missing participant annuity assumptions” in § 4050.2, the present value as of the deemed distribution date of each dollar of annual benefit (payable monthly as a joint and 50 percent survivor annuity) is $2.4048 if the benefit begins when S and P would have been age 55. Thus, the monthly benefit to S commencing at age 55 is $168 (50 percent of $9,700 / (2.4048 × 12)). Since P could have elected a lump sum upon plan termination, S may elect a lump sum. S's lump sum is the present value as of the deemed distribution date (using the missing participant annuity assumptions) of the monthly benefit of $168, accumulated with interest at the designated benefit interest rate to the date paid.