A Conversion Factor Definition converts an initial payment form to another payment form. The factor is the value of the initial annuity divided by the value of the annuity after conversion.

• Choose: Applies a standard payment-form preset to the initial annuity inputs.
• Fraction of Benefits Payable: Defines the portion of the initial benefit payable under each survival condition.
  • During the Certain Period: Portion payable during the guaranteed period.
  • While Only the Primary Annuitant is Alive: Portion payable while the primary annuitant survives and the beneficiary does not.
  • While only the Beneficiary is Alive: Portion payable while the beneficiary survives and the primary annuitant does not.
  • While Both are Alive: Portion payable while both the primary annuitant and beneficiary survive.
  • Use maximum fraction allowed under 1.401(a)(9)-6: Uses the applicable maximum beneficiary fraction permitted by the regulation.
• Certain Period: Defines the guaranteed-payment period for the initial annuity.
  • Fixed: Uses the entered guaranteed-payment period.
  • Variable: Uses the selected Formula Derived Item to determine the guaranteed-payment period by participant.
  • Use maximum period allowed under 1.401(a)(9)-6: Limits the guaranteed period to the applicable regulatory maximum.

• Choose: Applies a standard payment-form preset to the annuity after conversion inputs.
• Fraction of Benefits Payable: Defines the portion of the converted benefit payable under each survival condition.
  • During the Certain Period: Portion payable during the guaranteed period.
  • While Only the Primary Annuitant is Alive: Portion payable while the primary annuitant survives and the beneficiary does not.
  • While only the Beneficiary is Alive: Portion payable while the beneficiary survives and the primary annuitant does not.
  • While Both are Alive: Portion payable while both the primary annuitant and beneficiary survive.
  • Use maximum fraction allowed under 1.401(a)(9)-6: Uses the applicable maximum beneficiary fraction permitted by the regulation.
  • Include Pop-up Option: Reflects an increase in the primary annuitant's payment after the beneficiary's death.
• Certain Period: Defines the guaranteed-payment period for the annuity after conversion.
  • Fixed: Uses the entered guaranteed-payment period.
  • Variable: Uses the selected Formula Derived Item to determine the guaranteed-payment period by participant.
  • Use maximum period allowed under 1.401(a)(9)-6: Limits the guaranteed period to the applicable regulatory maximum.

• Actuarial Equivalence Definition: Supplies the mortality and interest assumptions used for both annuity values.

• Round Type: Selects the rounding method applied to the conversion factor.
• Round Unit: Sets the primary rounding unit.
• Alternate Unit: Sets the alternate unit used by rounding methods that require one.
• Round factors at integer ages prior to interpolating: Rounds integer-age factors before a noninteger-age conversion factor is interpolated.

• Advanced: Opens the Conversion Factor Advanced screen for age measurement, interpolation, payment timing, beneficiary assumptions, mortality handling, and cost of living adjustments.
• View item in QuickCalc: Makes the definition available in QuickCalc (Currently unavailable)