An Annuity Factor Definition values a specified payment form using an Actuarial Equivalence Definition and the configured payment dates, age measurements, and rounding.

• Payment form:
  • Description: Identifies the factor in payment-form and plan-item selection lists.
  • Choose: Applies a standard payment-form preset to the fraction and certain-period inputs. Select a form in Select Annuity and accept it to fill the fraction and certain-period inputs.
  • Fraction payable during Certain Period: Portion of the initial benefit payable during the guaranteed period.
  • Fraction payable when only Primary is alive: Portion payable while the participant survives and the beneficiary does not.
  • Fraction payable when only Beneficiary is alive: Portion payable while the beneficiary survives and the participant does not.
  • Fraction payable when Both are alive: Portion payable while both participant and beneficiary survive.
  • Use maximum fraction allowed under 1.401(a)(9)-6: Replaces the configured beneficiary fraction with the applicable maximum permitted by the regulation.
  • Fixed Certain Period: Uses the entered number of guaranteed-payment years. Enter 0 when there is no certain period.
  • Variable Certain Period: Uses the selected Formula Derived Item to determine guaranteed-payment years by participant.
  • Use maximum period allowed under 1.401(a)(9)-6: Limits the guaranteed period to the applicable regulatory maximum.
  • Includes Pop-up Option: Increases the participant payment after beneficiary death using the selected Conversion Factor or Formula Derived Item.
• Measurement and payment dates:
  • Actuarial Equivalence Definition Name: Supplies the mortality and interest assumptions used to develop the factor.
  • Factor Measurement Date: Date at which attained age is measured. Available sources include Calculation Date, Annuity Commencement Date, Employee Contribution Payment Date, Small Benefit Cashout Date, a Derived Date, and a Formula Derived Item.
  • Payment Start - Immediate: Values payments beginning at the factor measurement date.
  • Payment Start - Derived Date / Fixed Age / Fixed Deferral: Begins payments on the selected date, at the entered age, or after the entered period. A fixed deferral is measured in years from the factor measurement date.
  • Payment Start - Benefit Payment Set NRD / Formula Derived Item: Begins payments on the Normal Retirement Date from the selected set or on the date produced by the selected formula. For a deferred annuity with a nonzero certain period, a participant-only fraction of 0 and beneficiary-only fraction of 1 use beneficiary mortality for the deferral discount.
  • Payment Stop - None: Values a lifetime payment stream with no fixed stop date.
  • Payment Stop - Derived Date / Fixed Age / Fixed Period: Ends payments on the selected date, at the entered age, or after the entered payment period.
  • Payment Stop - Benefit Payment Set NRD / Formula Derived Item: Ends payments on the selected set's Normal Retirement Date or the date produced by the selected formula.
  • Rounding of Factor: Rounds the calculated factor using the selected type, unit, and alternate unit.
  • Round factors at integer ages before interpolation: Rounds the bracketing integer-age factors before developing a noninteger-age result.
• Advanced: Opens the Advanced Annuity Parameters screen for age measurement, interpolation, payment timing, beneficiary assumptions, mortality handling, and cost of living adjustments.
• View: Opens the factor-table viewer (Currently unavailable)
• View item in QuickCalc: Makes the factor available in QuickCalc (Currently unavailable)