Defined Benefit/Cash Balance Illustration Assumptions and Methods

Assumptions

Unless otherwise disclosed on the illustration, here is a summary of the actuarial assumptions that Nova 401(k) Associates uses:

  • Interest rates for minimum required contribution – MAP-21 rates
  • Interest rates for the maximum deductible contribution: Segment rates with a two month lookback
  • Pre-retirement¬†decrement assumptions: None
  • Retirement assumption: 100% at normal retirement age
  • Percentage of participants electing a lump sum:100%
  • Administrative expenses paid from the plan: $0

Methods

The actuarial funding method is the unit credit method as prescribed under the Pension Protection Act of 2006.

The asset valuation method is the market value of assets.