Section 2.35.329. Actuarial adjustment factor basis.

	(a)  The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1973 through June 30, 1975 are  
		(1) for the 50 percent or 75 percent joint and survivor option, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with  
			(A) annual interest rates for female members age 50 and a male spouse age 48, through female member age 60 with a male spouse age 62, that varies from 1.43 percent through 0.00 percent, respectively, with varying rates in between for other ages; or  
			(B) annual interest rates for male members age 50 and a female spouse age 48, through male member age 60 with a female spouse age 62, varies from 4.14 percent through 4.19 percent respectively, with varying rates in between for other ages;  
		(2) for the 66 2/3 last survivor option,   
			(A) a factor set for male members with a female spouse using  
				(i) the 1971 Group Annuity Mortality Table, GA71M for male members and GA71F for female spouses; and  
				(ii) annual interest rates for male members age 50 with a female spouse age 48, through male member age 60 with a female spouse age 62, that varies from 4.67 percent through 5.34 percent respectively, with varying rates in between for other ages;  
			(B) a factor set for female members with a male spouse using  
				(i) the 1971 Group Annuity Mortality Table, GA71F set back six years for female members and GA71M setback four years for male spouses; and  
				(ii) annual interest rates for female members age 50 with  a male spouse age 48, through female member age 60 with a male spouse age 62, that varies from 4.53 percent through 0.00 percent, respectively, with varying rates in between for other ages;  
		(3) for the level income option, a factor set using separate male and female rates from the 1951 Group Annuity Mortality Table, table GA51M for males and table GA51F for females, with an annual interest rate of 3.7 percent;  
		(4) for an indebtedness amount owed, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with an annual interest rate of 7.0 percent;  
		(5) for an early retirement benefit,  
			(A) a factor set for male members using the 1971 Group Annuity Mortality Table, table GA71M, with an annual interest rate for a whole age of 50 through 54 at 4.l7 percent;  
			(B) a factor set for female members using the 1971 Group Annuity Mortality Table, table GA71F, with an annual interest rate for a whole age of 50 through 54 that varies from 4.47 percent to 4.49 percent, respectively.  
	(b)  The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1975 through August 31, 1978 are  
		(1) for the 50 percent or 75 percent joint and survivor option, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with  
			(A) annual interest rates for female members age 50 and a male spouse age 48, through female member age 60 with a male spouse age 62, that varies from 1.43 percent through 0.00 percent, respectively, with varying rates in between for other ages; or  
			(B) annual interest rates for male members age 50 and a female spouse age 48, through male member age 60 with a female spouse age 62, varies from 4.14 percent through 4.19 percent respectively, with varying rates in between for other ages;  
		(2) for the 66 2/3 percent last survivor option,  
			(A) a factor set for male members with a female spouse using  
				(i) the 1971 Group Annuity Mortality Table, GA71M for male members and GA71F for female spouses; and  
				(ii) annual interest rates for male members age 50 with a female spouse age 48, through male member age 60 with a female spouse age 62, that varies from 4.67 percent through 5.34 percent respectively, with varying rates in between for other ages;  
			(B) a factor set for female members with a male spouse using  
				(i) the 1971 Group Annuity Mortality Table, GA71F set back six years for female members and GA71M setback four years for male spouses; and  
				(ii) annual interest rates for female members age 50 with a male spouse age 48, through female member age 60 with a male spouse age 62, that varies from 4.53 percent through 0.00 percent, respectively, with varying rates in between for other ages;  
		(3) for the level income option, a factor set using separate male and female rates from the 1951 Group Annuity Mortality Table, table GA51M for males and table GA51F for females, with an annual interest rate of 3.7 percent;  
		(4) for an indebtedness amount owed, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with an annual interest rate of 7.0 percent;  
		(5) for an early retirement benefit, a factor that reduces the normal retirement amount by 0.5 percent per month for each month that the retirement precedes the normal retirement age.  
	(c)  The basis of the assumptions for the reduced benefit actuarial adjustment factors from September 1, 1978 through December 31, 1980 are  
		(1) for the 50 percent or 75 percent joint and survivor option, a factor set using separate male and female rates from the sex-distinct 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with  
			(A) an annual interest rate for female members with a male spouse of 6.0 percent; or  
			(B) an annual interest rate for male members with a female spouse of 6.0 percent;  
		(2) for the 66 2/3 last survivor option, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with  
			(A) an annual interest rate for female members with a male spouse of 6.0 percent; or  
			(B) an annual interest rates for male members with a female spouse of 6.0 percent;  
		(3) for the level income option, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with an annual interest rate of 6.0 percent;  
		(4) for an indebtedness amount owed, a factor set using sex distinct male and female rates from the 1971 Group Annuity Mortality Table, table GA71, with an annual interest rate of 6.0 percent;  
		(5) for an early retirement benefit, a factor that reduces the normal retirement amount by 0.5 percent per month for each month that the retirement precedes the normal retirement age.  
	(d)  The basis of the assumptions for the reduced benefit actuarial adjustment factors from January 1, 1981 through June 30, 1983 are  
		(1) for the 50 percent or 75 percent joint and survivor option, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U with an annual interest rate of 6.0 percent;  
		(2) for the 66 2/3 last survivor option, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U, with an annual interest rate of 6.0 percent;  
		(3) for the level income option, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U, set forward two years, with an annual interest rate of 6.0 percent;  
		(4) for an indebtedness amount owed, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate of 6.0 percent;  
		(5) for an early retirement benefit, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U, with an annual interest rate for a member with a whole age of 50 and 54 that varies from 8.25 percent and 8.53 percent, respectively, with varying rates in between for other ages.  
	(e)  The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1983 through June 30, 1986 are  
		(1) for the 50 percent or 75 percent joint and survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table with, annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 8.98 percent through 9.78 percent, respectively, with varying rates in between for other ages;  
		(2) for the 66 2/3 last survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, with annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 9.10 percent through 10.58 percent, respectively, with varying rates in between for other ages;  
		(3) for the level income option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one year, with an annual interest rate of 8.0 percent;  
		(4) for an indebtedness amount owed, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate of 8.0 percent;  
		(5) for an early retirement benefit, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U, with an annual interest rate for the whole age of 50 and 54 varying from 9.98 percent and 10.24 percent, respectively, with varying rates in between for other ages.  
	(f)  The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1986 are  
		(1) for the 50 percent or 75 percent joint and survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, with annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 8.98 percent through 9.78 percent, respectively, with varying rates in between for other ages;  
		(2) for the 66 2/3 last survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, with annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 9.10 percent through 10.58 percent, respectively, with varying rates in between for other ages;  
		(3) for the level income option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one year, with an annual interest rate of 8.0 percent;  
		(4) for an indebtedness amount owed, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate of 8.0 percent;  
		(5) for an early retirement benefit from July 1, 1986 through June 30, 1996, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate for the whole age of 55 and 59 varying from 7.67 percent and 7.62 percent, respectively, with varying rates in between for other ages.  
	(g)  The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1996 are for an early retirement benefit, a factor that reduces the normal retirement amount by 0.5 percent per month for each month that the retirement precedes the normal retirement age.  

Authorities

39.35.003

Notes

Authority

AS 39.35.003 Editor's note: Effective 7/20/2006, Register 179, the Department of Administration readopted 2 AAC 35.329, without change, to affirm the validity of that section following statutory amendments made in ch. 9, FSSLA 2005. Chapter 9, FSSLA 2005 eliminated the Public Employees' Retirement Board, and largely transferred the board's authority to adopt regulations in 2 AAC 35 to the commissioner of administration. Even though the adoption of 2 AAC 35.329 was effective 12/19/2003, it was not published until Register 172, January 2005. ________________________

History

Eff. 12/19/2003, Register 172; readopt 7/20/2006, Register 179

References

2.35.329;2.35