The Conversion Factor Definition Advanced Screen is for defining a conversion 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 conversion factors. Make a selection in the drop down boxes labeled Calculation method to determine ages, Rounding of birth dates, Age Rounding, and the number of digits used to round repeating decimals.
• 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.
• 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 Annuity Commencement Date, Termination Date (if any), 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.
• Use of Interpolation for Factor Calculation: details the parameters for the use of interpolation (if any) when calculating conversion factors. This area is used when plan factors are determined by first calculating factors at specific ages and then interpolating to solve for interim ages.
  
  Historically, this was done to reduce computation time prior to the development of more advanced computer processors. For example, a plan may specify that factors are calculated at every 5th year from age 45 (45, 50, 55, etc) and then interpolation is used for ages other than those divisible by 5.
  
  Check the box Calculate at fixed ages and then interpolate if interpolation is to be used, then enter the applicable interpolation start age and period in the boxes labeled Interpolation Start Age and Interpolation Period, respectively. For the example above, you would specify a starting age of 45 and a period of 5 years in this section.
• Age Measurement: indicate the date upon which the current attained age should be determined in the calculation of the factor. Choose either Annuity Commencement Date, Calculation Date, Account Determination Date, Small Benefit Cashout Date, or Formula Derived Item. For the later, select the Formula Derived Item that should be used 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.
• 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.
• COLA Deferral Period: specify the period of deferral before COLA is applied.
• COLA Frequency: specify the frequency at which COLA is applied, and whether it uses Compound or Simple type.