Check of Annuity Purchase Rate

[Guest Doug Goelz]

I have written a program to calculate various annuity purchase rates, and I need to check the results for a particular scenario. Does anyone have a system that could easily check the following rate for me?

Mortality Table:

1994 GAR for males and females

Rates Projected with Full Generational Improvement for Issue Year 2002 using Projection Scale AA for Males and Females

Interest Rate: 6.00%

Certain Period: 5 Years (and payable regardless of primary annuitant surviving to deferral age)

COLA Rate: 3.00% (annual rate applied from current age)

Primary Annuitant is Male; Secondary Annuitant is Female, 3 years younger

Form of Payment: 100% J&S, Deferred to Age 65, with monthly payment frequency

Annuity Purchase Rate for male 60 (with female spouse 57) at issue = 16.1303 ?

[david rigby]

I have no idea if this is correct. My software seems to allow for this, but does not provide enough information to check it (that is, no q's at projection).

I get a 100%J&S (60M, 57F) value of 14.551313. For reference, my male life annuity at 60 is 11.95511.

[Guest Doug Goelz]

Thanks for the reply pax. The annuity purchase rate that you listed is actually based on the generational version of the UP-94 Male Table (which is the same as the 1994 GAM Basic Male). The 1994 GAR table I was using is based on the 1994 GAM Static table (i.e., the 1994 GAM Basic with a 7% load).

Using your table, I match exactly your LA rate. However, I get a J&S rate (based on the parameters I mentioned) of 15.8675.