CFR 1998 annual edition (revised as of 1998-07-01) · in effect Jul 1, 1997 to Jul 1, 1999
(a) General rule. Except as otherwise provided in paragraph (b) of this section (regarding the valuation of benefits payable as lump sums), the plan administrator shall value annuity benefits as of the valuation date by—
(1) Using the mortality assumptions prescribed by
§ 4044.53 and the interest assumptions prescribed by Table I of appendix B to this part;
(2) Using interpolation methods, where necessary, at least as accurate as linear interpolation;
(3) Using valuation formulas that accord with generally accepted actuarial principles and practices;
(4) Taking mortality into account during the deferral period of a deferred joint and survivor benefit only with respect to the participant (or other principal annuitant), if upon the death of the beneficiary the participant may elect an actuarially increased single life annuity or if a new beneficiary may succeed to the survivor portion of the benefit; and
(5) Adjusting the values to reflect the loading for expenses in accordance with appendix C to this part.
(b) Benefits payable as lump sums. For valuing benefits payable as lump sums (including the return of accumulated employee contributions upon death), and for determining whether the lump sum value of a benefit exceeds $3,500, the plan administrator shall value benefits in the same manner as benefits to be paid as annuities except that—
(1) The mortality assumptions prescribed in
§ 4044.54 and the interest assumptions set forth in Table II of appendix B to this part shall apply,
(2) There shall be no adjustment to reflect the loading for expenses, and
(3) Beneficiary mortality during the deferral period shall be disregarded as provided in
paragraph (a)(4) of this section without regard to whether the participant may elect an actuarially increased single life annuity upon the death of the beneficiary or whether a new beneficiary may succeed to the survivor portion of the benefit.