Benefit Item COLA

A benefit item normally uses the Sponsor COLA. Configure a benefit-item override when one benefit stream requires a different increase pattern.

Default Sponsor COLA

When Override Assumed COLA Parameters is not selected, the benefit item uses the Sponsor COLA from the applicable valuation assumption provision.

Override the COLA for a benefit item

The override is configured on the Basic tab of the Valuation Provision Item screen and applies only to that benefit item.

Override Assumed COLA Parameters — Replaces the Sponsor COLA for the selected benefit item.

Annuity Factor — Selects the factor that supplies the item’s COLA assumptions.

COLA settings supplied by the Annuity Factor

The selected Annuity Factor supplies the increase rate, cap, deferral or start age, frequency, and simple or compound treatment configured on its Advanced screen under Cost of Living Adjustment.

This Annuity Factor supplies only the benefit item’s COLA assumptions. It is separate from the Annuity Factor selected for each form of benefit payment.

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