Annuity Purchase Rates(APR)

[Guest William Lehman]

1) Are APR's published somewhere? I am pretty sure they are, just not sure where to look. Internet site, etc.

2) Do they change from year to year?

[AndyH]

Annuity rates are comprised of an interest rate and a mortality table. They would change if either were changed. It depends upon what you are using them for. For cross-testing, the regulations say you can use from 7.50% to 8.50% and one of several "standard" mortality tables.

I don't know of sample rates being "published", but they can be generated from virtually any retirement plan administration software system.

[Guest William Lehman]

Where can I find the mortality tables.

I am doing some design things in excel and inherited some stuff that had the APR's in them. I just wanted to verify they are correct or use different tables to see if I get different results.

[jaemmons]

You may be able to obtain them from the Society of Actuaries website at www.soa.org.

[imchipbrown]

I don't know if this link will let you in, but give it a try.

If you're asked for a user name and password, a click on Cancel may get you in.

www.pensionalysis.com/APR.XLS

Let me know if it works.

Chip Brown

BTW, the rates are in the SORXM - Male or SORXF - Female columns on the left. To use them, divide a monthly benefit by the rate to get a lump sum. Multiply a lump-sum by the rate to get a monthy benefit.