Rick's Practice Problem 430(i) #9

This problem asks you to calculate the At-risk funding target at 1/1/2010 and gives retirement decrements at ages 60 and 65. My understanding is that the ARFT is based on the assumption that participants retire at the earliest possible age within the next 11 years, but not before the end of the current plan year. The participant is age 60 on 1/1/2010. When I worked the problem, I ignored the decrements and assumed the participant retired on 1/1/2011. The solution takes the decrements into account, using retirement at age 60 and 61. If the assumption is that the participant cannot retire before the end of the plan year (1/1/2010-12/31/2010), why do we assume a retirement on 1/1/2010? Are the rules different when there are multiple decrements?



Any help would be much appreciated!

Rick's Practice Problem 430(i) #9