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New Mortality Tables Ignore Lump Sum Mortality, Penalizing Annuitants
money vs. time Link to more items from this source
Nov. 10, 2014
"[A]ssumptions used for funding and disclosure are self-correcting over time. If you overestimate how long someone will live, and as a consequence put too much money into your plan, that simply means that contributions will go down in the future as experience gains are recognized. Not so for lump sums -- if you overestimate longevity and overpay there's no way to get the money back. It's gone for good. So you're giving participants a windfall, and draining the trust while you do it."

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