Decrement assumptions determine the annual probabilities of retirement, termination, disability, and active death, together with the timing and competition treatment applied when those events overlap.
Retirement Probability Tables are maintained for the sponsor and can vary by age, service, sex, and select period. Termination and Disability Probability Tables are maintained as System tables and selected in Sponsor Assumptions.
Funding and accounting results use their respective decrement assumptions. Tax-Max and PBGC use the funding decrement assumptions, timing, and competition treatment.
100% at fixed age — Sets retirement to zero before the selected age and 100% at and after that age. In the certainty year, competing active mortality, termination, and disability probabilities are zero.
Retirement Probabilities — Uses one Sponsor Retirement Probability Table. Its Rates Base determines whether rates are retrieved by age, service, or both, and a rate enters the active roll-forward only when at least one retirement benefit is eligible that year.
Varies by Reported Amount — Selects a Retirement Probability Table using the participant’s exact value for the configured Sponsor Reported Amount.
A separate post-termination retirement selection is stored on the screen but is not currently requested by the valuation calculation. (Currently unavailable)
Termination Probabilities — Uses one System Termination Table. Rates are retrieved by age, sex, and the table’s applicable service or select period.
Probabilities stop at earliest retirement age — Sets termination to zero beginning with the first year in which the participant is retirement-eligible and the active retirement assumption produces a nonzero rate.
Disability Probabilities — Uses one System Disability Table. Rates are retrieved by participant age and sex.
Probabilities stop at earliest retirement age — Sets disability to zero beginning with the first year in which the participant is retirement-eligible and the active retirement assumption produces a nonzero rate.
Beginning of year — Places decrements at the beginning of the year. Competition adjustments use the full sum of the other active decrement rates.
Middle of year — Places decrements at midyear. Competition adjustments use one-half of the sum of the other active decrement rates.
The selected precedence controls whether each raw annual rate is adjusted for competing decrements. Participant detail displays the raw rate, resulting probability, and cumulative probability of remaining active. Decrement Timing and Competition provides the adjustment formulas.
Adjust all rates — Adjusts mortality, termination, disability, and retirement for competition with the other active decrements.
Do not adjust any rates — Uses each unadjusted annual decrement rate as its probability.
Only adjust mortality — Adjusts mortality for the other active decrements and leaves termination, disability, and retirement unadjusted.