Actuarial Outpost Calculating the Post-Egtrra 415(b)(1)(A) DB limit
 User Name Remember Me? Password
 Register Blogs Wiki FAQ Calendar Search Today's Posts Mark Forums Read
 FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

 Thread Tools Search this Thread Display Modes
#1
10-06-2017, 04:06 PM
 Noumenon84 Philosopher King Join Date: Jan 2009 Studying for FAP.... eventually Posts: 969
Calculating the Post-Egtrra 415(b)(1)(A) DB limit

I was just asked to estimate the 2018 limit, which based on a few resources I found (one being Mercer), indicate that it will be increasing to \$220k.

I haven't calculated this before, but I was given a file with the prior year calculation. I just have one question that I hope is simple. I see one part of the calculation is to divide the sum of the prior year's reported CPI - U in Q3 by what the file I was given refers to as "Base Quarter 2001 Q3", which is \$533.3. Is this constant from year to year as part of the definition of the 415 limit or do I need to update this parameter? If so, what is this and where does it come from?

Thanks!
__________________
Sum ergo Cogito

P FM MLC MFE C
#2
11-09-2017, 11:21 AM
 Scheng1234 SOA Non-Actuary Join Date: Dec 2016 Location: CA Studying for LTAM College: CPP baccalaureate Favorite beer: Pilsner Urquell Posts: 3

I just use the IRS COLA tables. Lots of handy limits provided there.

https://www.irs.gov/pub/irs-tege/cola_table.pdf
#3
11-10-2017, 01:04 PM
 StillCrazed Member ASPPA COPA Join Date: Sep 2016 Posts: 132

When you look back to the legislated \$90,000 amount, you will note that the base is fixed from that indexing date. Don't change it.

 Thread Tools Search this Thread Search this Thread: Advanced Search Display Modes Linear Mode

 Posting Rules You may not post new threads You may not post replies You may not post attachments You may not edit your posts BB code is On Smilies are On [IMG] code is On HTML code is Off

All times are GMT -4. The time now is 02:32 AM.

 -- Default Style - Fluid Width ---- Default Style - Fixed Width ---- Old Default Style ---- Easy on the eyes ---- Smooth Darkness ---- Chestnut ---- Apple-ish Style ---- If Apples were blue ---- If Apples were green ---- If Apples were purple ---- Halloween 2007 ---- B&W ---- Halloween ---- AO Christmas Theme ---- Turkey Day Theme ---- AO 2007 beta ---- 4th Of July Contact Us - Actuarial Outpost - Archive - Privacy Statement - Top