A System of Distribution of Surplus for Participating Deferred Annuities

This paper discusses the problem whether an office should issue with-profit deferred annuity contracts, and having concluded that with-profit contracts should be issued, it discusses a consistent system for the calculation of premium rates, the valuation of the business and the distribution of profi...

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Bibliographic Details
Published in:Journal of the Institute of Actuaries 1956-09, Vol.82 (2), p.179-220
Main Author: Edey, J.
Format: Article
Language:English
Subjects:
Annuities
Cash
Deferred annuities
Employee pension plans
Mortality
Offices
Pension funds
Pension plans
Price premiums
Surrender
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Summary:This paper discusses the problem whether an office should issue with-profit deferred annuity contracts, and having concluded that with-profit contracts should be issued, it discusses a consistent system for the calculation of premium rates, the valuation of the business and the distribution of profits. Primarily, however, it describes what has been done in one particular case and refers but briefly to some other possibilities, there being no doubt that the discussion will embrace other systems of distribution. The approach in this particular case started from a large existing portfolio of non-profit group deferred annuity contracts and the system of distribution was designed to be applicable to group business. In the result, however, a system has emerged which could be applied to individual contracts and which has been extended to embrace group deferred annuity contracts carrying the option to take a cash sum at the maturity date. In the latter application it is sound under different systems of taxation.
ISSN:0020-2681
2058-1009
DOI:10.1017/S0020268100046400