Assumptions

All annuity values generated are annuity-due values, i.e., beginning of period values. For example, monthly values are paid on the 1^st day of the month.

All annuity values are annual values payable m times a year as denoted by the Payment Frequency parameter.

Selection Menu Parameter Fields

Saved Parameters – Each time the annuity values are generated, the selected parameters are saved. Thus, the next time a user returns to the Selection Menu the selected parameters last entered will be displayed.

Mortality Table – Select the mortality to be used in determining the annuity values. Oak Mountain Software provides many common mortality tables. The user may update and add as many additional tables as they desire. See the Mortality Table Manager for instructions on how to update the mortality table data.

Interest Segments – Select the interest rate to be used in determining the annuity values. The interest rate listed is an annual interest rate.

Up to 3 interest rates can be identified for each segment period. If no interest rate is needed, select ‘N/A’.

Note: Use Interest Segment 1 as the Interest rate entry for Standard (ST) Single Interest rate calculations.

Years Segments – Enter the number of years that the corresponding interest rate segment is to be applied.

The sum of the 3 yearly segments should total 125 years. If no entry is made the values are defaulted such that the total years sum to 125.

Note: For Standard (ST) Single Interest rate calculations, no Segmented Years entry is needed as the interest rate in Interest Segment 1 applies to all years.

Setback / Setforward - Select the setback or setforward years to be applied to the mortality rate ages used in determining the annuity values.

Period Certain - Select the period certain to be used in determining the annuity values. The certain period is in years.

Deferred Age - Select the age (in years and months) to be used in determining the deferred annuity values.

Constant q_x Values - Select a factor to applied to the q_x values in determining the annuity values. If no entry is made this field defaults to 1.0.

Display Ages - Select the age range for the values the annuity values to be displayed.

Individual Age - Select the age (in years and months) to be used in determining the Individual annuity values.

Payment Frequency - Select the frequency to be used in determining the annuity values. All annuity values displayed are annual values that are payable m times a year.

Survivor Percentage - Select the survivor percentage to be applied in determining Joint & Survivor and Joint & Contingent annuity values. Optional feature to choose a different percent by selecting “Other %” and then entering the desired survivor percent (enter 40 for a 40% survivor benefit) in the open box.

COLA (Cost-of-Living) Percentage - Select the percentage to be applied as an annual cost-of-living adjustment during the annuity payment period.

Display Option - Select the annuity values to be displayed.