The Annuity Factor Definition Screen is used to specify the parameters for determining a set of annuity factors, including the definition of actuarial equivalence, form of annuity, and payment start/end date.

• Description: space to provide a brief description for the Annuity Factor Definition.
• Parameters for Underlying Annuity: the combination of the parameters in this section defines the specifics of the form of annuity.
  
  You can either fill in this section manually or use the blue Choose button described below to speed up the process.
• Choose: the blue Choose button provides a quick and easy way to fill in the parameters for a variety of types of annuities.
  
  From the screen entitled Select Annuity, select the form of annuity you wish to use from the list and click on the green "check" button. The parameters in this section will then be pre-filled with the entries that correspond to that form of annuity.
• Fraction of Benefits Payable: enter the fraction of the initial benefit that is payable during the specified period below.
• During the Certain Period: enter the fraction payable during the certain period only. Generally, this value will either equal 0 when there is no certain period or 1 when the entire initial benefit is payable during the certain period.
• When Only the Primary Annuitant is Alive: indicate the fraction of the initial annuity that is payable when only the primary annuitant is alive.
• When Only the Beneficiary is Alive: enter the fraction of the initial annuity that is payable when only the contingent annuitant is alive.
• When Both are Alive: indicate the fraction of the initial annuity that is payable when both the primary and contingent annuitants are alive.
• Use maximum fraction allowed under 1.401(a)(9)-6: set fraction to the maximum allowed under government regulations.
• Includes Pop-up Option: check this box if the annuity contains a pop-up provision.
  
  A pop-up option is benefit payable to the participant that increases to the benefit that would have been payable to the participant under the single normal form if the contingent annuitant dies first. In order for DB Precision to properly determine the benefit increase, you must select the Conversion Factor Definition or Formula Derived Item that represents the corresponding option (this CAF factor should also include a popup option).
• Certain Period: it is possible to either use the same fixed certain period for all or use a variable period that changes for each Person based upon the entry in a defined field. Select one of the following:
  
  
  • Fixed Certain Period: select this button to elect a fixed certain period. Enter the length of the certain period in years in the box provided.
  • Variable Certain Period: select this button to elect a certain period that is variable. In the drop down box, choose the field that defines the certain period (in years) for each Person.
  • Use maximum period allowed under 1.401(a)(9)-6: set period to the maximum allowed under government regulations.
  If there is no certain period, select Fixed Certain Period and enter 0 in the box provided.
• Actuarial Equivalence Definition Name: select the Actuarial Equivalence Definition you wish to use when determining this set of annuity factors.
• Factor Measurement Date: indicate the date upon which the annuity factor should be measured. This date is used to determine the current attained age in the calculation of the factor. Choose from Small Benefit Cashout Date, Annuity Commencement Date, Employee Contribution Payment Date, Calculation Date or a Derived Date.
• Derived Date: if Derived Date is selected for the Factor Measurement Date field, select the Derived Date Definition you wish to use here.
• Formula Derived Item: if Formula Derived Item is selected for the Factor Measurement Date field, select the Formula Derived Item you wish to use here.
• Rounding of Factor: use the Rounding Type, Rounding Unit, and Alternate Unit fields to indicate how to round the calculated annuity factor. If needed, Round factors at integer ages prior to interpolating to use integer age interpolation.
• Start Date of Underlying Annuity Payments: indicate the date the underlying annuity payments are to commence when calculating the annuity factor. Select from the following:
• Not a Deferred Annuity (immediate): select for immediate annuities.
• Derived Date: choose if the date upon which the payments begin is specified using a Derived Date Definition. Select the Derived Date Definition from the drop down box.
• Fixed Age: select if underlying annuity payments all begin at a fixed age. Enter such age in the box provided. Payment ages less than 20 and greater than 90 will be warned as being unreasonable.
• Fixed Deferral Period: choose this option if payments begin after a fixed period. This is an alternative to defining the date or age upon which payments start. Instead, you define the period to wait before they commence.
  
  Enter the fixed number of years of deferral from the current date in the space provided. Periods of 0 years or greater than 75 years are warned as being unreasonable.
• Benefit Payment Set NRD: select if payments should begin as of Normal Retirement Date as defined in a Benefit Payment Set. Choose the applicable Benefit Payment Set from the drop down box.
• Formula Derived Item: select if the underlying annuity should commence as of a date or age defined in a Formula Derived Item. Choose the applicable Formula Derived item from the drop down box.
• Stop Date of Underlying Annuity Payments: indicate the date the underlying annuity payments are last payable. Select from the following:
• Not a Temporary Annuity: select if there is no stop date. This is applicable if the underlying annuity is not temporary.
• Derived Date: choose if the date upon which the payments stop is specified using a Derived Date Definition. Select the Derived Date Definition from the drop down box.
• Fixed Age: select if underlying annuity payments all cease at a fixed age. Enter such age in the box provided.
• Fixed Payment Period: choose this option if payments are made for a fixed period. This is an alternative to defining the date or age upon which payments stop. Instead, you define the length of time that benefits are paid.
  
  Enter the fixed number of years of the payment period in the space provided.
• Benefit Payment Set NRD: select if payments are last payable as of Normal Retirement Date as defined in a Benefit Payment Set. Choose the applicable Benefit Payment Set from the drop down box.
• Formula Derived Item: select if the underlying annuity should cease as of a date or age defined in a Formula Derived Item. Choose the applicable Formula Derived item from the drop down box.
• Advanced: the Blue Advanced button takes you to the Annuity Factor Definition Advanced Parameters screen. You can view and/or change an annuity factor's advanced settings here.
  
  This screen includes parameters such as the determination of age, the date for measuring actuarial equivalence, the Cost of Living Adjustment (if any) to be included in the determination of the factor, and the beneficiary age assumption. These fields are typically standard but in some instances they may need to be adjusted for specific plans.
• View: this function is currently not available.
• View item in QuickCalc: this function is currently not available.