Age & Rounding Assumptions
The Age & Rounding Assumptions topic refines the factor calculations for converting to this payment form.
Factors based on age determined by:
The Rounding parameter indicates whether and how the annuity and conversion factors should be rounded, with the choices: None, Final factor only or All steps. If you select None, no annuity factor or conversion factor rounding will be done. If you select Final factor only, the final conversion factor, after any interpolation, is rounded based on the Using rounding rule: parameters. If you select All steps, the annuity and conversion factors are rounded at each step of the calculation based on the Using rounding rule: parameters.
Using rounding rule: defines the amount and direction of the rounding. Amount sets the rounding amount. A value of .001, for example, indicates that values should be rounded to thousandths. Direction sets the direction that the values should be rounded: Up, Down, or to the Nearest multiple of the Amount.
If the payment form conversion from the normal form is based on a conversion table that is an Age Difference Table type, the dialog box will include parameters to further refine the determination of the applicable age difference. Conversion table age difference in based on: allows you to choose either:
Birth year, which determines the number of years between the member's and beneficiary's birthdates assuming that both were born on January 1 of their actual year of birth. If checked, the Reduce age difference by # of years pre-65 box will further adjust this calculated age difference, before selecting a value from the table, by subtracting the number of years the benefit commences before age 65.
Age, which determines the member and beneficiary's ages using the appropriate Age Definition and then subtracts the ages to get the age difference. When the age difference is fractional, the If age difference is fractional selection determines which the table value should be used: