The Advanced Parameters Screen is for defining an annuity factor's more advanced features, 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 may need to be adjusted for specific plans.

• Measurement of Current Age: select the method for calculating participant and contingent annuitant age when developing the annuity factors. Make a selection in the drop down boxes labeled Calculation method to determine ages and Rounding of birth dates.
• Payment Timing/Frequency: area to define the timing and frequency of the underlying annuity payments.
• Timing of Payments: specify when benefit payments are made during a period. Choose either Beginning of Period or End of Period.
• Payment Frequency: select the frequency of payment. Choose either Weekly, Monthly, Quarterly, Semi-annual, or Annual.
• Age Rounding: use the Type, Unit, and Alternate Unit fields to indicate how age is to be rounded for both primary and contingent annuitants. Also enter a number of digits to round repeating decimals.
• Actuarial Equivalence Measurement: for specifying the date that actuarial equivalence is determined. This is particularly relevant for definitions with interest rates and/or mortality tables that vary with time, such as the PPA segment rates.
  
  Make a selection from the drop down box labeled Actuarial equivalence is as of. Options include Factor Measurement Date, Termination Date (if any), Calculation Date, Annuity Commencement Date, or Formula Derived Item. For the later, select the Formula Derived Item that defines the date from the drop down box labeled Formula Derived Item.
• Beneficiary Age Assumption: for specifying an assumption for beneficiary age based on the age of the participant.
  
  If you wish to use an assumption, check the box Assume a fixed age older/(younger) than participant. Enter the age difference in years in the boxes labeled Male Participants and Female Participants for male and female participants, respectively. If the beneficiary is assumed to be older than the participant, enter the age difference as a positive number. If younger, use a negative number.
  
  Select the box Use actual beneficiary age if data exists if you wish to only use this assumption if the actual beneficiary age is not available. To use the assumption for all regardless of the data available, do not check this box.
• Annuity Factor Determination for Non-Integer Ages: for specifying how to determine annuity factors at ages that are non-integer.
  
  This is only applicable if ages are not rounded to integers. With integer rounding, the button N/A (current age is rounded to integer age) will be checked.
  
  For non-integer ages, choose either Linear Interpolation or Geometric Interpolation. Factors are determined at the two bracketing integer ages and then either linear or geometric interpolation is used to estimate the factor at the interim age.
• Mortality Distribution Method: provides users choices for how mortality is distributed during the year and how non-annual payments are to be handled. Choose from the following:
• Woolhouse Approximation (standard): this is the most common method used and follows the Euler-Maclaurin Expansion for converting annual annuities to non-annual.
• Uniform Distribution: this method assumes that deaths are uniformly distributed throughout the year. It is rarely used and generally only found for plans that were administered by Mercer.
• Interpolated Mortality Rates: this method uses the Woolhouse Approximation as described above but also, for individuals at non-integer ages, interpolates the mortality rates using the current and next year to approximate rates for each year. This will generally lead to higher mortality each year than usage of the standard method. Furthermore, for deferred annuities, all payments to both primary and contingent annuitants are discounted for survival of both the participant and beneficiary when using this method which can lead to lower annuity values. This method is rare and should be used with caution.
• Determine factor results as monthly: when this box is checked, results will be determined as monthly amounts (annual factor x 12)
• Reduce beneficiary values by the probability of participant death during payment deferral period: use mortality probability to reduce beneficiary values for this annuity factor.
• Cost of Living Adjustment: for specifying the Cost of Living Adjustment (COLA) to be applied to the underlying annuity, if any. Enter the following:
• Annual Increase Rate: enter the annual increase in benefit. For example, enter .02 for a 2% annual COLA increase. If there is no COLA, this field should be set equal to 0.
• Maximum Benefit Ratio: specify the maximum total benefit with cumulative COLA increases expressed as a ratio of the initial benefit. For example, a value of 1.5 in this field represents a maximum equal to 150% of the initial benefit. The total underlying annuity benefit with all COLAs can not be greater than 150% of the initial benefit in this case.
  
  If there is no maximum COLA, check the box labeled None.
• Age COLA starts: select either Payment Age or Current Age for the age the COLA begins to be applied to the underlying annuity.
• COLA Frequency: specify the frequency at which COLA is applied.
• COLA Type: choose whether to use Compound or Simple for COLA Type.