PERAC Memo #48 - 2004: Option A and Option B factors
Option A and Option B factors
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PERAC Memo 48/2004 releases updated Option A factors and revised Option B factors, effective July 1, 2004, with the Option B figures superseding those issued in Memo #44/2004 (Option A factors are unchanged from that earlier memo). Boards should use the enclosed S (present value) and A (ASF-to-monthly-annuity conversion) factors when calculating retirement allowances under these options going forward; note that total Option A allowances remain unchanged, only the annuity/pension split is affected. No other action is required beyond updating calculations to reflect the new factor tables.
Full Text
Memorandum 48/2004
M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Option A and Option B factors
DATE: December 23, 2004
The Commission is releasing the Option A and revised Option B factors effective
July 1, 2004.
The revised Option B factors replace the factors that were released November 30, 2004 as part of PERAC Memo #44/2004. There is no change to the Option A factors from the November 30, 2004 memo.
The enclosed sheet shows two sets of factors for each option. The S factor is the present value factor for each option and age. The A factor is the factor used to convert the Annuity Savings Fund (ASF) balance to a monthly amount. As with the current factors, the monthly annuity to be paid to a retiree is determined by multiplying the ASF balance by the A factor (under either retirement option). This monthly value is then multiplied by 12 to get the annual annuity. Please note that the total allowance under Option A will not change with these new factors. The only change under Option A will be the annuity/pension allocation.
If you have any questions, please contact Jim Lamenzo at (617) 666-4446 ext. 921 or John Boorack at (617) 666-4446 ext. 935.
Encs.