This screen defines the interest-rate basis used by a Valuation Assumption Provision. It opens from the Details button beside either the Minimum Funding Interest Rate or Maximum Funding Interest Rate on the Basic tab. The settings are saved for the rate basis whose Details button opened the screen.

Select one interest-rate type. The fields used by the selected type become available, while fields for the other types remain unavailable.

• Fixed Rate: uses the three entered rates for successive duration ranges.
  • Fixed Rate: supplies the first rate, used for durations of fewer than 5 years.
  • Post-decrement: supplies the second rate, used for durations from 5 through 19 years.
  • Post-retirement: supplies the third rate, used for durations of 20 years or more.

  Enter the same value in all three fields when one level rate should apply at every duration.

• Published Funding Segment Rates: uses the applicable published funding segment rates from the DB Precision system tables.
• Published Lump Sum Segment Rates: uses the applicable published lump-sum segment rates from the DB Precision system tables.
• Published Yield Curve - IRS Spot Rates: uses the published IRS spot-rate yield curve for the applicable lookup month.
• Published Yield Curve - FTSE Spot Rates (normal): uses the normal FTSE spot-rate yield curve for the applicable lookup month.
• Published Yield Curve - FTSE Spot Rates (above median): uses the above-median FTSE spot-rate yield curve for the applicable lookup month.
• Custom Segment Rates: uses the entered S1, S2, and S3 rates for durations of fewer than 5 years, 5 through 19 years, and 20 years or more, respectively.
• Rates vary by years from valuation date: uses the Year and Rate pairs in the Rates by Year grid to vary rates by duration from the valuation date.
• Rates vary by calendar year: uses the Year and Rate pairs in the Rates by Year grid to vary rates by calendar year.

• Lookback Months: moves the lookup month backward for a published segment-rate or yield-curve selection. Enter a value from 0 through 4. This field is unavailable for fixed, custom segment, and year-varying rates.
• Rates by Year: supplies the Year and Rate pairs used when rates vary by years from the valuation date or by calendar year.
  • Enter rows consecutively, beginning with the first row, and list Year values in ascending order.
  • For years from the valuation date, enter values from 0 through 121.
  • For calendar years, enter values from 1900 through 2100.
  • Enter a Rate for every Year. Rates must be between 0 and 0.50.