Interest factor components are available as both Benefit Formula Components and Accrual Basis Components.  They generate interest factors for use in your benefit formula.  The parameters under the following topics define an interest factor:

The Interest rates topic defines the interest rate during the payment and deferral periods of the annuity: 

• Constant indicates that the annuity is determined based on a static interest rate. Enter the rate as a decimal (e.g. 0.08 for 8.0%).
• Constant from database field indicates that the interest rate is a constant rate (e.g., 0.08) specified by a field within the data. Select the numeric field from the dropdown menu.
• Based on Interest Rate Table indicates that the interest rate is determined based on the year and month of each determination date.  Select the applicable table from the Interest Rate Tables library.  

When the Based on Interest Rate Table option is selected, the Factors reflect setting allows you to control what interest rate is used. Interest rate associated with each plan year indicates that the interest factor reflects the interest rate in effect for each applicable plan year (as specified under the From / Thru Dates topic). Applicable interest rate as of the determination date indicates that the interest factor reflects only the interest rate in effect on the determination date.

The Survivorship (Mortality) Rates topic defines the following parameters: 

• Specify the Mortality rates assumption by choosing a table in the drop-down menu from the Mortality Rates library. All standard mortality tables are permitted. Dynamic mortality tables are not permitted.  Indicate no mortality by selecting <none> from the drop-down menu.
• If a mortality table is selected, the Calculate D_X commutation function based on age parameter defines the applicable age assumption as either age rounded to the nearest integral value or age last birthday.  If age last birthday is selected, the option to Linearly interpolate to age in years and months becomes available.  If this box is checked, specify the appropriate age assumption by choosing age in years and completed, nearest or started months. Additional details about how ProAdmin calculates age are available in the Technical Reference article Age Calculations.

The From / Thru Dates topic defines how ProAdmin should apply the interest rate and from when the interest starts accruing.

• The Apply interest: (or Apply interest & survivorship: if mortality rates apply) radio buttons determine whether the interest is applied Annually to Benefit Commencement Date or Compound to Normal Retirement Date, where normal retirement date is as specified in the Plan Attributes of the Plan Definition. Note that, for estimates with multiple decrement/commencement dates, if Annually to Benefit Commencement is selected, the factor will always be 1. 
• The From: radio buttons define the starting point for the interest calculation.  The default selection is from Decrement. Alternatively, Date field indicates that interest is credited annually starting from the date in the specified database field, in which case the factor is 1 for all calculation dates prior to the database field date.