Annuity factor

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Annuity factor

Present value of $1 paid for each of t periods.

Annuity Factor

The calculation of the present value of a cash flow or other income stream that produces $1 in income over so many periods of time.
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While DB participants face actuarially fair annuities, DC participants have to buy annuities on the open market where marketing and other costs reduce annuity factors [which determine payment amounts] by about 15 to 20%," the report states.
These three steps provide us with a time series of weekly annuity factors for each annuity combination.
These monthly annuity factors can easily be calculated from a mortality table and depend only on the age of the annuitant and the assumed interest rate.
3605 (from the Tax Facts Single Life Annuity Factors Table in Tax Facts Appendix C).
1808 (from Single Life Annuity Factors Table in Appendix C).
A remainder factor is obtained by converting an annuity factor (use Single Life Annuity Factors) into a remainder factor.
If the benefit base, as opposed to the account value, is applied to purchase the guaranteed minimum lifetime income, the annuity factors used may include what are called age setbacks.
The table accompanying "Present Value of an Annuity" provides annuity factors from one to thirty years, for sample rates between 5% and 20%.
The lump sum could be converted into retirement income of 25 percent to 30 percent of final average pay, depending on annuity factors.
Current pooling arrangements include new annuity factors based on the mortality experience as it is realized.
The solutions to these problems employ the same compounding that builds interest in savings accounts or is used to compute annuity factors and count rates.
In section "Cohort Analysis," we extend our analysis to encompass multiple cohorts, joining the pool at arbitrary time points, with differentiated annuity factors.