The Payment / Calculation Period topic of annuity factor components defines the period over which the annuity is assumed payable:

A Certain period during which the annuity is payable whether or not the annuitant is alive can be specifed. The period can be defined by its length (in years) or the age at which it expires (i.e., the first age at which the member no longer receives a payment). ProAdmin begins the certain period at the annuity commencement age indicated by the deferral parameter. If the certain period is to expire at an age attained at or prior to the commencement age, then the annuity will have no certain period. The available choices to define the certain period are: none, to age or for period (years). If age or period is selected, a box is enabled to specify the applicable age or period.

A Deferral period for the annuity is defined by entering either the payment commencement age or the length of a deferral period for payments that do not commence immediately. Select none for benefits payable immediately. If a deferred benefit is specified, an immediate benefit will be valued for a lookup age older than the commencement age. The available choices to define the deferral period are: none, to age, entered as an integer value or Plan Constant, for years, to NRD, or to SSNRA. If age or years is selected, a box is enabled to specify the applicable age or period. If to NRD is selected, the deferral age will be the (possibly fractional) age defined by the Plan Attributes Normal Retirement Date (NRD). If to SSNRA is selected, the deferral age will be the (possibly fractional) social security normal retirement age determined by the member's date of birth. (E.g., 65 if born before 1938, 66 if born between 1943 and 1954, inclusive, 67 if born after 1959, and otherwise fractional.) Note that annuity factors must be interpolated when deferral is to NRD or SSNRA, which is to say that the Age Definition selected under Age / Interpolation must have a monthly or fractional component, so cannot be age nearest or last birthday.

TIP: Early retirement reduction factors based on actuarial equivalence can be calculated in a benefit formula by dividing two annuity factors, where the numerator is an annuity deferred to normal retirement age and the denominator is an immediate annuity. Both annuity factors would reflect the plan’s actuarial equivalence assumptions which may include dynamic mortality, age by year of birth mortality, interest rates that varies based on the year and month of commencement, and/or segmented interest rates.

A Temporary period for the annuity is defined by entering the length of the payment period or the age at which benefits cease (i.e., the first age at which the member no longer receives a payment). ProAdmin begins the temporary period at the annuity commencement age indicated by the deferral parameter. If the cessation age is attained at or prior to the commencement age, then the annuity value will be zero. The available choices to define the temporary period are: none, to age entered as a integer value or Plan Constant, for years, to NRD, or to SSNRA.  If age or years is selected, a box is enabled to specify the applicable age or period. If to NRD is selected, the end of the temporary period will be the (possibly fractional) age defined by the Plan Attributes Normal Retirement Date (NRD).  If to SSNRA is selected, the end of the temporary period will be the (possibly fractional) social security normal retirement age determined by the member's date of birth. (E.g., 65 if born before 1938, 66 if born between 1943 and 1954, inclusive, 67 if born after 1959, and otherwise fractional.) Note that annuity factors must be interpolated when the temporary period is to NRD or SSNRA, which is to say that the Age Definition selected under Age / Interpolation must have a monthly or fractional component, so cannot be age nearest or last birthday.

The Refine deferral / temporary period using Date Adjustment checkbox, if checked, indicates that the temporary and/or deferral period will be adjusted based on the selected date rounding rule from the Date Adjustments library, with annuity factors calculated based on the Age / Interpolation parameters. For example, if deferral is to the first of the month coincident with or following age 62, interpolation to get the correct deferral period might be based on exact age or age in years and completed months, as specified in Age / Interpolation.

The Youngest / Oldest Recognized Ages parameters allow you to freeze the annuity factors (except for assumption changes) below or above specified ages. Set a minimum annuity age value by checking the box to Use age x annuity values for all ages up to age x.

If you choose to specify a youngest recognized age and the referenced Interest Rate Table (on the Mortality, Interest & COLAs topic) is a spot curve or segment rate table, the Spot rate method parameter becomes available (unghosted).  The default choice "Start rates at youngest recognized age" will assume that duration 0 for the spot rates is the specified youngest recognized age.  The annuity factor calculated in this manner, say for age 65, is an immediate annuity commencing at age 65 (or later if the participant is older than age 65). Alternatively, you may choose Start rates at calculation age, which will set duration 0 for the spot rates to the participant's age at each calculation date.  The annuity factor calculated in this manner, say for age 65, is the annuity factor determined by dividing a deferred to age 65 lump sum by a deferred to age 65 life annuity.

If you choose to specify a youngest recognized age and the referenced Mortality Rate Table (on the Mortality, Interest & COLAs topic) is a dynamic or fully generational mortality table, the Mortality method parameter becomes available. The default choice "Rates at calculation age" will use the mortality rates in effect at the participant's age at each calculation date for ages younger than the youngest recognized age. Alternatively, Rates at youngest recognized age will use the expected or projected mortality rate in effect at the youngest recognized age for all younger ages. This latter choice will cause the annuity values at each age up to the youngest recognized age to be level, whereas under the Rates at calculation age choice, the annuity factors before the youngest recognized age will vary because the mortality varies.

Set a maximum annuity age value by checking the box to Apply oldest recognized age using. There are two options for the oldest recognized age:  a specific Age or the Age at date field. The age at a (scalar) date field option is useful for plan amendments where annuity values using current assumptions are required based on the age at a plan amendment date.

If you Apply an oldest recognized age and the the referenced Mortality Rate Table (on the Mortality, Interest & COLAs topic) is a dynamic or fully generational mortality table, the Mortality method parameter becomes available. The default choice "Rates at calculation age" will use the mortality rates in effect at the participant's age at each calculation date for ages older than the oldest recognized age. Alternatively, Rates at oldest recognized age will use the expected or projected mortality rate in effect at the oldest recognized age for all older ages. This latter choice will cause the annuity values at each age after the oldest recognized age to be level, whereas under the Rates at calculation age choice, the annuity factors after the oldest recognized age will vary because the mortality varies.

The Annuity factor freeze date indicates that the annuity factor should freeze at a specified date. If Do not freeze is selected, the annuity value is re-determined at each calculation date. If Freeze at decrement is selected, the annuity factor at the decrement age will be used for calculations at all benefit commencement dates. If Freeze at the date field: is selected, the annuity factor at the date field chosen from the dropdown list will be used for all calculations after that date. The multi-choice field allows you to select any scalar date field from the Data Dictionary.