PVJL12

PVJL12 calculates the present value of a joint life annuity based on assumptions for interest and mortality for two lives 𝑥 and 𝑦. This function is the same as the PVJL function with the following simplifying parameters:

· Frequency = 12 (monthly)

· COLA = 0 (no COLA)

· CalculationMethod = 1 (exact method)

· NoPreRetMort = 0 (use pre-retirement mortality)

· AnnTiming = 0 (beginning of month)

Syntax

PVJL12 (AnnuityCode, Percentage, CurrentAgeX, CurrentAgeY, CommencementAge, InterestRate, MortalityTableX, [MortalityTableY], [YearsCertain], [StopAge], [Times12], [Rounding])

Parameter Name

Description

AnnuityCode

Type of joint life annuity to evaluate:

Annuity Code	Type of Calculation	Payment while only 𝑥 is alive	Payment while only 𝑦 is alive	Payment while both 𝑥 and 𝑦 are alive
0	joint annuity	0	0	1
1	contingent joint & survivor annuity	1	Percentage	1
2	joint & survivor annuity	Percentage	Percentage	1
3	pop-up annuity	𝐵	Percentage	1
4	reversionary annuity	1	0	0
“x”	single life annuity to 𝑥	1	0	1
“y”	single life annuity to 𝑦	0	1	1
“xy”	joint annuity	0	0	1

For a pop-up annuity, 𝐵 is calculated as follows:

Percentage

The joint percentage payable to the survivor according to the AnnuityCode. May be either a percent or a number, e.g. 50% or .5.

Note: A value that is 10 or greater (i.e. 1000%) will be divided by 100, e.g. if you enter 10 it will be treated as 10%; if you enter 50 it will be treated as 50%.

CurrentAgeX

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

CurrentAgeY

Current age of the secondary annuitant 𝑦 (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 primary annuitant 𝑥 at benefit commencement.

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

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

InterestRate

The interest rate(s) to discount future payments to calculate the present value. May be a number, a percentage, a text string, a named range, or reference to a range.

· Rates can be defined using these interest definitions.

· 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%.

MortalityTableX

Mortality table definition text string for primary annuitant 𝑥.

MortalityTableY

Mortality table definition text string for secondary annuitant 𝑦.
Optional, default = MortalityTableX.

YearsCertain

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

StopAge

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

Times12

TRUE or FALSE. Multiply the resulting factor by 12.
Optional, default = FALSE.

Rounding

Number of decimal places for rounding.
Optional, default = no rounding.