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How does Admin calculate the ever changing annuity balances?

April 26, 2017admin Annuity balances CALCULATE changing

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How does Admin calculate the ever changing annuity balances?

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Admin offers two calculation methods based on the type of monthly (or quarterly) statements you might receive from your investment managers. If your statement shows the monthly or quarterly average earnings rate for your reserve fund, then your Admin software will apply this percent earnings rate to each annuity in the fund. The software takes into account the contribution date for each contract and the distributions (payments) made from each contract. If your monthly statements show the end of month total account balance, then your Admin software will compute the average daily balance for the fund and allocate the appropriate portion of the total balance to each annuity in the fund. Again, the calculation takes into account the new contributions and distributions made from the fund for each month.