The Cantelli Benefit payment form models benefits in which there is a lump sum payable at member death, and the amount of the lump sum is equal to the present value (under plan assumptions), at the moment before death, of all future benefits, including both:

• A life annuity to the member
• All the possible future death benefits

In benefits with this payment form, ProVal will automatically calculate the amounts of the lump sums (referred to as “Cantelli lump sums” below), using the input assumptions and the amount of the annuity. The amount of the annuity is determined by the benefit formula.

There are two types of Cantelli benefits available:

• life annuity + life insurance at member death – The member is assumed to receive an immediate life annuity at decrement, and a Cantelli lump sum is payable upon the member’s death.
• lump sum at decrement -Future benefits are converted to a Cantelli lump sum payable immeditately.

Note that these two options are equivalent when used in death benefit.

The amount of the life insurance at member death or the lump sum at decrement is determined using the parameters specified in the Cantelli Benefit payment form and the Benefit formula which is expected to hold the corresponding annuity amount. The annuity portion of the benefit, if any, is calculated assuming immediate commencement at decrement.  

For inactives, all Cantelli benefits are always assumed to be a life annuity to the member and a life insurance on member death.    

The following parameters are only used in calculating the amount of the life insurance at member death or the lump sum at decrement. They do not affect the life annuity portion of the benefit, if any.

• The Spouse fraction indicates the continuation percentage. This parameter is used even if the Apply fraction married box below is unchecked.
• The Interest rate and COLA indicate the interest rate and cost-of-living adjustment, respectively. If these rates vary with valuation assumptions, check the Interest assumption sensitivities applicable box to apply the valuation interest rate and COLA sensitivities to the Cantelli interest rate and COLA, respectively.
• Select the Healthy mortality and Disabled mortality tables. When valuing a disability benefit, the mortality will automatically switch from disabled to healthy at the actuarial retirement age. For that reason, the actuarial retirement age is a required input if Cantelli benefits are being valued. 
• The Apply fraction married box indicates that the life insurance or lump sum portion of the benefit is payable only if the participant is married at the time of the payment. If unchecked, the fraction married is set to 1. If the benefit is valued as a life annuity + life insurance on member death, the life insurance portion of the benefit will use this checkbox in calculating the life insurance amount and to adjust the present value of the life insurance benefit. If Apply fraction married is checked, select the applicable fraction married table. If the Individual Method applies (and a spouse date of birth is provided), the fraction married table specified will be used when calculating the life insurance or lump sum amounts, without regard to spouse survival. However, the fraction married used to in the valuation of the resulting benefit will use the spouse survival from the valuation date to the lump sum date, instead of the valuation fraction married table.