Using Form Codes

When you define a form of payment, you provide the following information:

Form code (Form Code field).
Guaranteed number of payments (Years Certain field).
Continuing percentage (Pct Continued field).

This is true whether you use the factor utility (the Factor Alias page) or the optional forms of payment function.

The factor utility automatically applies the appropriate actuarial equation to a form code. The following table indicates, by form code, when you must enter information in the Years Certain and Pct Continued fields. In the column labeled Options Required?, Y means you must enter information, N means the information is not applicable, and O means it is optional.

Form Code and Full Name	Options Required?	Description
CO Certain Only Installment	Years Certain: Y Pct Continued: N	An amount is paid for a specified number of years and no longer. If the participant dies, any remaining payments are made to a beneficiary.
JS Joint and Survivor Annuity	Years Certain: O Pct Continued: Y	One amount is paid until the participant dies. Then a survivor benefit, reduced to the specified percent continued, continues until the beneficiary dies.
LIFE Life Annuity	Years Certain: O Pct Continued: N	A periodic amount is paid for the life of the participant.
LIO Level Income Option	Years Certain: O Pct Continued: O	A monthly payment is reduced at the social security retirement age by the estimated amount of money to be received from social security.
LTS Last To Survive Annuity	Years Certain: O Pct Continued: Y	Similar to a joint and survivor annuity, except that the amount is reduced when either the participant or the beneficiary dies.
LUMP Lump Sum	Years Certain: N Pct Continued: N	A onetime payment.
POP Pop Up Annuity	Years Certain: O Pct Continued: Y	Similar to a joint and survivor annuity, except that the participant's otherwise reduced benefit "pops up" to the single life annuity level if the beneficiary predeceases the participant.
REV Reversionary Annuity	Years Certain: O Pct Continued: N	On the retiree's death, the entire benefit is paid as a life annuity to a beneficiary. The system's actuarial calculation of a reversionary annuity assumes that the benefit is forfeited if the beneficiary predeceases the retiree. If your plan rules differ, use a different method for calculating this optional form. If you enter a years certain, the certain period starts when the beneficiary begins receiving payments.
SPJS Spouse J&S Demonstration	Years Certain: O Pct Continued: Y	No actual benefit. This is informational only. It shows the benefit that a spouse loses if the participant names a non-spouse beneficiary.

Form Code and Full Name

Options Required?

Description

Certain Only Installment

Years Certain: Y

Pct Continued: N

An amount is paid for a specified number of years and no longer. If the participant dies, any remaining payments are made to a beneficiary.

Joint and Survivor Annuity

Years Certain: O

Pct Continued: Y

One amount is paid until the participant dies. Then a survivor benefit, reduced to the specified percent continued, continues until the beneficiary dies.

LIFE

Life Annuity

Years Certain: O

Pct Continued: N

A periodic amount is paid for the life of the participant.

LIO

Level Income Option

Years Certain: O

Pct Continued: O

A monthly payment is reduced at the social security retirement age by the estimated amount of money to be received from social security.

LTS

Last To Survive Annuity

Years Certain: O

Pct Continued: Y

Similar to a joint and survivor annuity, except that the amount is reduced when either the participant or the beneficiary dies.

LUMP

Lump Sum

Years Certain: N

Pct Continued: N

A onetime payment.

POP

Pop Up Annuity

Years Certain: O

Pct Continued: Y

Similar to a joint and survivor annuity, except that the participant's otherwise reduced benefit "pops up" to the single life annuity level if the beneficiary predeceases the participant.

REV

Reversionary Annuity

Years Certain: O

Pct Continued: N

On the retiree's death, the entire benefit is paid as a life annuity to a beneficiary. The system's actuarial calculation of a reversionary annuity assumes that the benefit is forfeited if the beneficiary predeceases the retiree.

If your plan rules differ, use a different method for calculating this optional form. If you enter a years certain, the certain period starts when the beneficiary begins receiving payments.

SPJS

Spouse J&S Demonstration

Years Certain: O

Pct Continued: Y

No actual benefit. This is informational only. It shows the benefit that a spouse loses if the participant names a non-spouse beneficiary.

Whenever you enter a value in Years Certain, any payments remaining after the participant dies are paid to a beneficiary.

There is no separate form code for certain and continuous forms of payment. You create these forms by adding years certain criteria to other forms. Typically, you add to a single life annuity (LIFE), but you might also add to joint and survivor and other forms. For example, to set up a 10–year certain and continuous annuity with no joint and survivor criteria, enter LIFE in the Form Code field and 10 in the Years Certain field.