1. (a) The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1973 through June 30, 1975 are

   1. (1) for an indebtedness amount owed, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with an annual interest rate of 7.0 percent;

   2. (2) for an early retirement benefit,

      1. (A) a factor set for male members using the 1971 Group Annuity Mortality Table, table GA71M, with an annual interest rate for a whole age of 50 through 54 at 4.17 percent;
      2. (B) a factor set for female members using the 1971 Group Annuity Mortality Table, table GA71F, with an annual interest rate for a whole age of 50 through 54 that varies from 4.47 percent to 4.49 percent, respectively, with varying rates in between for other ages.

2. (b) The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1975 through August 31, 1978 are

   1. (1) for an indebtedness amount owed, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females with an annual interest rate of 7.0 percent;
   2. (2) for an early retirement benefit, a factor that reduces the normal retirement amount by 0.5 percent per month for each month that the retirement precedes the normal retirement age.

3. (c) The basis of the assumptions for the reduced benefit actuarial adjustment factors from September 1, 1978 through December 31, 1980 are

   1. (1) for an indebtedness amount owed, a factor set using sex distinct male and female rates from the 1971 Group Annuity Mortality Table, table GA71, with an annual interest rate of 6.0 percent;
   2. (2) for an early retirement benefit, a factor that reduces the normal retirement amount by 0.5 percent per month for each month that the retirement precedes the normal retirement age.

4. (d) The basis of the assumptions for the reduced benefit actuarial adjustment factors from January 1, 1981 through June 30, 1983 are

   1. (1) for an indebtedness amount owed, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate of 6.0 percent;
   2. (2) for an early retirement benefit, a unisex factor set using a 50 percent to 50 percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U, with an annual interest rate for a member with a whole age of 50 through 54 that varies from 8.25 percent to 8.53 percent, respectively, with varying rates in between for other ages.

5. (e) The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1983 through June 30, 1986 are

   1. (1) for the 50 percent or 75 percent joint and survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, with annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 8.98 percent through 9.78 percent, respectively, with varying rates in between for other ages;
   2. (2) for the 66 2/3 last survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, with annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 9.10 percent through 10.58 percent, respectively, with varying rates in between for other ages;
   3. (3) for an indebtedness amount owed, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate of 8.0 percent;
   4. (4) for an early retirement benefit, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U, with an annual interest rate for the whole age of 50 through 54 varying from 9.98 percent to 10.24 percent, respectively, with varying rates in between for other ages.

6. (f) The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1986 are

   1. (1) for the 50 percent or 75 percent joint and survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, with annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 8.98 percent through 9.78 percent, respectively, with varying rates in between for other ages;
   2. (2) for the 66 2/3 last survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, with annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 9.10 percent through 10.58 percent, respectively, with varying rates in between for other ages;
   3. (3) for an indebtedness amount owed, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate of 8.0 percent;
   4. (4) for an early retirement benefit from July 1, 1986 a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate for the whole age of 55 through 59 varying from 7.67 percent to 7.62 percent, respectively, with varying rates in between for other ages.

(Eff. 12/19/2003, Register 172)