PVSLPPA

PVSLPPA calculates the present value of a single life annuity based on the so-called PPA assumptions for interest (3 segment rates) and mortality (annuitant, non-annuitant, combined, applicable).

Syntax

PVSLPPA(CurrentAge, CommencementAge, InterestRate1, InterestRate2, InterestRate3, CalcYear, MortTableType, [Sex], [YearsCertain], [AgeSetback], [Frequency], [COLA], [CalculationMethod], [NoPreRetMort], [StopAge], [AnnTiming], [YrsCertOption])

Parameter Name

Description

CurrentAge

Current age of the annuitant (i.e. the age at the valuation date). May be provided as an integer, or as a fractional amount (e.g. years & months).

CommencementAge

Age of annuitant at benefit commencement.

· If CommencementAge > CurrentAge then it will be valued as a deferred annuity.

· If CommencementAge is missing or zero, then CommencementAge is assumed to be = CurrentAge and it will be valued as an immediate annuity.

CalcYear

The IRS table year, i.e. for distributions subject to § 417(e)(3) with annuity starting dates during stability periods beginning in CalcYear.

InterestRate1

Segment rate 1 -- to discount payments made during the first 5 years (years 1 to 5). Must be a single number.

· Note: A value that is greater than 25% (i.e. 0.25) will be divided by 100; e.g. if you enter 2.75 it will be treated as .0275 or 2.75%.

InterestRate2

Segment rate 2 -- to discount payments made during the next 15 years (years 6 to 20).

InterestRate3

Segment rate 3 -- to discount payments made after the first 20 years (years 21 and later).

MortTableType

The type of static mortality table to use:

Type	Description
“ann”	annuitant table
“non”	non-annuitant table
“com” (or “small”)	optional combined table for small plans
“app”	applicable unisex table for distributions subject to §417(e)(3)

Sex

“m” or “f”; not used if type of table is “Applicable Table” because this is a unisex table.

YearsCertain

Number of years guaranteed payments. May be an integer, or a factional amount (e.g. years & months).
Optional, default = 0

AgeSetback

Mortality table age set-back. A negative number is a set-forward.
Note that you can also define a setback using the "/sb" option in the table definition (or "/sf").
Optional, default = 0.

Frequency

Number of payments per year:
Optional, default = 12

Frequency	Description
1	annual
2	semi-annual
4	quarterly
6	bi-monthly
12	monthly
99	continuous

COLA

Periodic cost-of-living adjustment applied to the benefit amount.
Optional, default = 0
Rates can be defined using these COLA definitions.

CalculationMethod

Method of calculation
Optional, default = 0

Method	Calculation Approach	How to Handle
Method	Calculation Approach	Fractional Ages	Frequency of Payments
0	discounted cash flow	interpolate on whole ages	Woolhouse
1	discounted cash flow	exact	exact
2	discounted cash flow	exact	Woolhouse
8	commutation functions	interpolate on 𝑙𝑥	Woolhouse
9	commutation functions	interpolate on 𝐷𝑥	Woolhouse

NoPreRetMort

The defines the application of pre-retirement mortality for a deferred annuity.
Optional, default = 0.

NoPreRetMort	Description
0	use pre-retirement mortality
1	no pre-retirement mortality

StopAge

Age when the annuity benefit stops -- no payment at this age.
Optional, default = to end of the mortality table.

AnnTiming

Defines when the payments are made in the period.
Optional, default = 0.

AnnTiming	Description
0	beginning of period
1	end of period
0 to 1	fraction of period, e.g. .5 means paid in middle of the period

YrsCertOption

This is to select the method of calculation for the certain portion of the annuity when using CalculationMethod =0. It does not apply for other methods. This is used only if YearsCertain not a whole number.
Optional, default = 0.

YrsCertOption	Description
0	interpolate on whole numbers
1	exact certain period + deferred annuity