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LSDefine

Simple English definitions for legal terms

actuarial equivalent

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A quick definition of actuarial equivalent:

Actuarial Equivalent: This means that when someone retires and starts receiving their pension, the amount they get each month is calculated so that it will last for the rest of their life. This is done by taking into account how long they are expected to live and how much money they have saved up. So, actuarial equivalent is the amount of pension benefits that will be paid out over the expected remaining lifetime of the person receiving it.

A more thorough explanation:

Actuarial equivalent refers to the amount of pension benefits that are accrued and paid out over the expected remaining lifetime of the recipient. This means that the total amount of benefits paid out will be the same, regardless of whether they are paid out monthly or at some other interval.

For example, let's say that a retiree is entitled to receive $1,000 per month in pension benefits. If the retiree is expected to live for another 20 years, the actuarial equivalent of this benefit would be $240,000 ($1,000 x 12 months x 20 years). This means that if the retiree chooses to receive a lump sum payment instead of monthly payments, the lump sum payment would be $240,000.

Another example would be if a retiree is entitled to receive $500 per month in pension benefits, but they choose to receive payments every three months instead of monthly. In this case, the actuarial equivalent of the benefit would be $1,500 ($500 x 3 months), which is the same total amount of benefits paid out over the expected remaining lifetime of the recipient.

These examples illustrate how the actuarial equivalent ensures that the total amount of pension benefits paid out is the same, regardless of the payment frequency or method chosen by the recipient.

actual value | actuarially sound retirement system

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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