9 percent of the expected present value of annuity
payments) would be required to reduce the probability of insolvency resulting from aggregate mortality shocks to 5 percent, and a markup of 5.
However, because high-income individuals have longer life expectancies, they will have a higher expected present value of annuity
payments than will low-income individuals if everyone is required to annuitize at a uniform price, as in most public pension plans.
5 million total capital gain ($4 million present value of annuity
Based on these facts, is deemed to have made a gift of $35,864 $200,000 FMV of the assets transferred - $164,136 present value of annuity