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Mortality and Timing Parameters

Under the Mortality and Timing Parameters topic, you define the mortality assumption to be used in your calculations, as well as the timing of annuity payments within each payment year.  Thus, the dialog box is divided into two sections, Mortality and Timing Parameters. 

In the Mortality section, unless all payment forms defined under the Payment Forms topic are payable only for a certain period (that is, life contingencies do not apply), you must select the mortality rate reference table (from among those unhidden in the current Project) that you wish to use for the Primary Annuitant (the plan member), and if joint life factors are to be generated you must select a mortality table for the Contingent Annuitant (the member's spouse or beneficiary, presumed to be of opposite sex).  For either the primary or the contingent table selection, the  button provides access to the Mortality Rate Table Library, in which you may create new tables or modify existing ones.  If an "Age by Duration from Decrement" table is selected, the duration is measured from the member age (entered under the Current Ages topic) at which the factor is being calculated.  You may not use a service-based mortality table.

The Calculation Year text field is accessible only for dynamic, fully generational and age by year of birth mortality tables. Enter the calendar year, for example, 2022, that you wish ProAdmin to assume is the year that corresponds to the attained ages specified under the Current Ages topic.

For dynamic 417(e) mortality tables, choose whether to Use the current applicable 417(e) mortality for year. This will use the appropriate 417(e) mortality for the selected calculation year​. For instance, if you select IRS 2018+ Applicable Mortality Table for 417(e) (dynamic) and the valuation year is 2022, selecting this option will swap the selected mortality table for the most recent available 417(e) mortality table to look up the applicable mortality for the year 2022. This will reproduce results for objects used in Estimate and Final Calculations which utilize a similar checkbox within their parameters.  Otherwise, leaving the option unchecked will use the selected mortality table and project the mortality to year 2022 using the projection rates applicable for the selected table.

For fully generational mortality tables, choose whether to Generate factors for an individual age x in valuation year, and if selected, specify the desired age. If this option is selected, all factors generated will be for the same individual. If this option is not selected, the factor for each age entered under the Current Ages topic will be for different individuals attaining each age in the applicable valuation year.  For example, if the valuation year is 2015 and factors are generated for an individual age 60 in valuation year, then an age 60 factor will be for someone who is attained age 60 in 2015 and an age 61 factor will be for someone whose attained age is 61 in 2016.  If this option is unchecked, than an age 60 factor will still be for someone who turns 60 in 2015, but an age 61 factor will be for someone who turns 61 in 2015.

For an age by year of birth mortality table, choose whether to Generate factors for year of birth.  Similar to the example above for projected mortality improvements, if this option is selected, all factors generated will be for the same individual. If the option is not selected, the factor for each attained age specified under the Current Ages topic will be for an individual attaining that age in the valuation year.  For example, if the valuation year is 2015, an age 65 factor would be for someone born in 1950, an age 64 factor would be for someone born in 1951, and so forth.

See Mortality Rates, in particular the Mortality Projection and Dynamic Mortality sections, for more information about these tables.

Check the Use zero mortality in the deferral period (if any) box to assume zero mortality rates, for all payment forms, during the payment form's entire deferral period (if any) for both the primary and contingent annuitants.

In the Timing Parameters section, your selection for the Payment Frequency parameter indicates, for all payment forms, how often payments are made within each payment year. ProAdmin assumes that benefit payments will be made in equal installments throughout the year and will adjust the present value of each payment form to account for multiple payments during the year.  The available frequencies are "Annual", "Semi-annual", "Quarterly", "Monthly", or "Continuous".  Note: if Commutations Functions are selected, this is the frequency (m) that will be applied to N(m). For details about the adjustment methodology, see the Technical Reference article entitled "Present values: Benefits payable (m)thly ".

Your selection for the Annuity Payment Timing parameter indicates, for all annuity payments forms and for all payment years, whether each payment is made at the beginning of each period or at the end of each period - for example, for 12 (monthly) payments each year, whether payments are made at the beginning or end of each month.  Select "Beginning of Period" for an annuity-due or "End of Period" for an annuity-immediate.  ProAdmin will adjust the present value of each annuity payment form to account for the indicated timing.  The length of each period (a year, half year, quarter, month, or a fraction of an instant for the continuous frequency) is determined by the setting of the Payment Frequency parameter. Note: the Annuity Payment Timing parameter does not affect a life insurance benefit, which is always assumed to be payable at the end of the period.  Again, for details about the adjustment methodology, see the Technical Reference article entitled "Present Values: Benefits payable (m)thly ".