Basic Tab

The Basic tab contains the provision period and all interest-rate settings.

• Period:
  • Effective Date: Sets the first date on which this provision applies.
  • Stop Date / None: Sets the last applicable date. Select None when the provision has no end date.

• Interest Rate Type and Segment Styled Rates:
  • Fixed Rate / Rate: Uses a fixed rate. Enter rates as decimals; for example, enter 0.06 for 6%.
    • Separate pre-payment: Allows a separate fixed interest rate before payments begin.
  • Segment 2 / Segment 3: Sets the second and third rates when segment-style interest applies.
  • Variable Rate: Uses the selected published rate or index instead of a constant rate. The remaining variable-rate settings determine which published values apply.

• Variable Interest Rate Parameters:
  • Rate Levels by Age: Choose Same for All Ages, PBGC Style Rates, or PPA Segment Rates for the applicable rate structure.
    • Reflect rate transition rules: Applies the transition rules associated with the selected segment-rate basis.
    • Use mid-year rates: Uses the mid-year rate treatment where applicable to the selected variable-rate basis.
  • Interest Rate Lookup: Groups the reset frequency, calendar anniversary, and lookback settings used to identify the applicable published rate.
    • Rate Reset Frequency: Sets how often the variable rate is reset: Annually, Semi-annually, Quarterly, or Monthly.
    • Calendar Anniversary — Month / Day: Sets the anniversary used with the reset frequency to determine the beginning of each rate period.
    • Lookback Months: Selects the published rate from this number of months before the beginning of the rate-reset period.
    • Blend rates with rates from months prior to lookback month: Blends the lookback rate with rates from earlier months.
      • Number of Months: Specifies the number of prior months used by the rate-blending selection.
  • Rate Determination:
    • Flat Adjustment: Adds the specified amount to the determined rate; enter 0.01 to add one percentage point.
    • Ratio Adjustment: Applies the specified ratio to the determined rate; enter 1.2 for 120%.
    • Rounding of Resulting Rate:
      • Round Type: Selects how the resulting variable rate is rounded.
      • Round Unit: Sets the rounding increment for the resulting variable rate.

Mortality Tab

The Mortality tab contains the participant and beneficiary mortality settings, projection and blending settings, and Rate Options.

• Mortality Tables — Participant and Beneficiary:
  • Base Table:
    • Mortality Table: Selects the base mortality table for each life. Choose (none) when mortality does not apply. Tables are maintained through Tables — Mortality. For annually changing 417(e)(3) mortality, the [Floating IRC - 417(e)(3)] selection uses the applicable table with the provision’s calendar anniversary.
    • Separate pre-payment mortality: Allows a different mortality basis before payments begin.
      • View: Opens the corresponding pre-payment mortality settings.
    • Male / Female: Selects the sex-specific probabilities used for the selected life.
  • Age Setback(+)/Setforward(-) — Years / Months: Adjusts the age used for mortality. Enter a positive adjustment for a setback and a negative adjustment for a setforward. Complete the participant and beneficiary entries separately.
  • Mortality Projection:
    • Projection Table: Selects the mortality improvement table. Choose (none) when no projection applies.
    • Projection Type: Selects Calculation year, Fixed year, or Generational projection.
    • Projection Year: Supplies the target year when Fixed year projection is selected.
    • Blend Fraction: Specifies the opposite-sex fraction used in blending for the selected life. A value of 0.5 represents an equal blend. Use this with the selected table and blending method.

• Rate Options:
  • Age Setback/Setforward: Selects the treatment of age adjustments when determining mortality rates. This setting works with the separate Years and Months entered for each life.
  • Blend Fraction: Selects the treatment of the participant and beneficiary blend fractions when determining mortality rates.
  • Factor Rounding: Selects the rounding treatment applied to the mortality factors.
  • Method for blending 2D Mortality: Selects how the male and female mortality results are combined when using two-dimensional projection.