ProAdmin Tip: Make use of our new #ELIG operator

Did you know…

 

With the addition of the new Eligibility Custom Operator (#ELIG), we thought it would be helpful to provide some information on what we believe will be one of its most impactful uses.

 

Benefits Payable Prior to Early Retirement Date When the Lump Sum Value is Below a Given Threshold

 

If you have a benefit that is payable when a participant either meets early eligibility requirements or certain payment forms are available prior to meeting early eligibility if the lump sum value of the accrued benefit is below a certain threshold, you can use the Eligibility Custom Operator to now address this in a single Benefit Definition.

  1. Create an Eligibility Custom Operator set to the Eligibility Definition and Service Definition Set that define the regular early retirement requirements, #ER_ELIG.
  2. Within the benefit formula for your Benefit Definition, create a temporary variable for normal form eligibility. Set the variable up as an #OR conditional with the first condition being #ER_ELIG and the second condition as the lump sum threshold –

Eligible:= #ER_ELIG #OR [(Benefit * PVFactor) <= 20000] &

Multiply the benefit payable in the Benefit Formula by this temporary variable –

[2 #ROUND (Benefit * ERF)] * Eligible

  1. Set the eligibility for payment forms available when the lump sum value of the benefit is under the applicable threshold to ‘Same as benefit eligibility.’ For payment forms that are only available once early retirement requirements are met, set an Alternative Eligibility Definition to the eligibility definition and service definition set used for the Eligibility Custom Operator (#ER_ELIG).

This set up will output the limited payment forms available when early eligibility isn’t met but the lump sum value of the benefit is under the applicable threshold and all optional payment forms when early eligibility is met.

 

As an example, assume a participant is eligible to take a benefit if they either reach early retirement eligibility at commencement of age 55 with 5 years of vesting or if the present value of the benefit is under $20,000. The benefit is available as a Lump Sum or Single Life, 10 Year Certain and Life, or 50%, 75%, or 100% Joint & Survivor annuity, where the 10 Year Certain and Life and 100% Joint and Survivor optional forms are only available after reaching early retirement eligibility.

Keep an eye out for a full article in the Plan Definition FAQ section of ProAdmin Help with more helpful information about the #ELIG operator. As always, reach out to support with any questions.