Vinson & Elkins chose #1 above, and the actuary used a 1958 life insurance mortality table to compute the insurance premiums, but used a 1971 annuity table
, which estimated longer lives than the 1958 table, to calculate pension costs.
Refer to the annuity table
on pages 527-528, which covers the insured, P, from age 38 through 94.
Because the annuity payments will typically be determined based on the FMV of the stock, the possibility of a taxable gift is remote if the correct annuity table
and interest rate are used.
The SOA published an updated payout annuity table
in 2012 called the 2012 Individual Annuity Mortality Table, or IAM Table for short.
Specifically, DU changed its health mortality table from the 1971 to the 1983 Group Annuity Table
Intuitively, by using an outdated annuity table
, CCRA is inadvertently enhancing the after-tax payoff of the annuity.
The resulting number is a present value multiplier found on the annuity table
Over the long term, it is the larger companies that will be more affected by the new annuity table
because they, rather than smaller companies, are spending time and effort on the payout business.
Table 4 Values per Premium Dollar of Annuity Policies in Canada, 1984-1996 Government of Government of Corporate Term Canada Canada Term Structure 30-Year Bond Structure Annuity Table
Male Average 0.
It would be interesting to fit data using a parametric copula and standard insurance industry tables, such as the 1983 Individual Annuity Table
A two-life annuity table
makes the value of the gift ascertainable.
The court rejected the estate's arguments that the annuity table
value was unrealistic and unreasonable because it did not take into account the unsecured nature of the payment obligation, the lack of a corpus to draw on or the estate's inability to assign, sell or transfer the interest.