Which mortality table(s) can I use for an annuity?
It's been a while since I've had to think about this but I've just been assigned a project where I need to estimate the cost of a guaranteed life annuity for a large group of annuitants (i.e. >20,000). I've been doing research into the regs but it's unclear as to which mortality table or tables I'm allowed to use. Also, since this is a guaranteed annuity, is the interest rate usually set at 3% right now?
I'm also looking at splitting the cost into two pieces: one cost that covers payments for everyone age 65-90 and then another that covers people age 90+. Does the mortality table option change because of this? How about age 85 or 95? I'm thinking not but I thought I'd throw out the question.
As I'm new to this field, I'd appreciate just about any input on this.