| Table 4 |
| INCOME INSURANCE |
| Insurance Reserve Fund (% if OASI) | 35.0% | Invested in Stock Fund (% of OASI) | 25.0% |
| Invested in Bond Fund (% of OASI) | 25.0% | | |
| Income Insurance Premium | 15.0% | Minimum Retirement Income | $18,000 |
| Bond Fund Rate of Return | 5.0% | Stock Fund RoR, Investment Period | 12.0% |
| Earning and Investment Period |
| | Gp 1 | Gp 2 | Gp 3 | Gp 4 | Gp 5 | Insurance Fund |
| Value of Investments after 40 years | $294,114 | $424,852 | $597,005 | $874,256 | $1,071,610 | |
| Bond Fund | $40,015 | $57,144 | $99,407 | $148,224 | $176,881 | |
| Stock Fund | $254,099 | $367,707 | $497,598 | $726,032 | $894,730 | |
| Income Maintenance Insurance Fund | | | | | | $106,199 |
| Calculation of Retirement Benefits1 |
| Bond Fund Annuity Value @ 2%2 | $2,447 | $3,495 | $6,079 | $9,065 | $10,817 | $12,990 |
| Stock Fund Annuity Value @ 5%3 | $20,390 | $29,506 | $39,929 | $58,259 | $71,795 | |
| Total | $22,837 | $33,001 | $46,008 | $67,324 | $82,613 | |
| Income Insurance Paid | $0 | $0 | $0 | $0 | $0 | $0 |
| Dividend | $996 | $1,423 | $2,475 | $3,691 | $4,404 | $12,990 |
| Initial Retirement Benefit | $23,833 | $34,423 | $48,483 | $71,014 | $87,017 | |
| Percent Preretirement Income | 190.7% | 122.5% | 78.5% | 72.5% | 71.0% | |
| Retirement Income1 |
| Year | Insured Minimum | Yearly Stock Fund Returns | Gp 1 | Gp 2 | Gp 3 | Gp4 | Gp 5 | Insurance Fund |
| 1 | $18,000 | 0.0% | $23,833 | $34,423 | $48,483 | $71,014 | $87,017 | $106,199 |
| 2 | $18,540 | 12.0% | $25,294 | $36,535 | $51,397 | $75,273 | $92,251 | $111,509 |
| 3 | $19,096 | 12.0% | $26,848 | $38,782 | $54,495 | $79,802 | $97,818 | $117,085 |
| 4 | $19,669 | 12.0% | $28,502 | $41,174 | $57,790 | $84,619 | $103,738 | $122,939 |
| 5 | $20,259 | 12.0% | $30,262 | $43,719 | $61,295 | $89,742 | $110,035 | $129,086 |
| 6 | $20,867 | 12.0% | $32,135 | $46,427 | $65,024 | $95,191 | $116,734 | $135,540 |
| 7 | $21,493 | 12.0% | $34,129 | $49,311 | $68,990 | $100,988 | $123,861 | $142,317 |
| 8 | $22,138 | 12.0% | $36,252 | $52,380 | $73,210 | $107,155 | $131,443 | $149,433 |
| 9 | $22,802 | 12.0% | $38,512 | $55,648 | $77,701 | $113,716 | $139,511 | $156,905 |
| 10 | $23,486 | 12.0% | $40,917 | $59,127 | $82,479 | $120,698 | $148,097 | $164,750 |
| 11 | $24,190 | 12.0% | $43,479 | $62,831 | $87,564 | $128,128 | $157,234 | $172,988 |
| 12 | $24,916 | 12.0% | $46,206 | $66,775 | $92,976 | $136,035 | $166,959 | $181,637 |
| 13 | $25,664 | 12.0% | $49,110 | $70,974 | $98,736 | $144,450 | $177,309 | $190,719 |
| 14 | $26,434 | 12.0% | $52,202 | $75,446 | $104,867 | $153,407 | $188,327 | $200,255 |
| 15 | $27,227 | 12.0% | $55,495 | $80,209 | $111,393 | $162,942 | $200,055 | $210,268 |
| 16 | $28,043 | 12.0% | $59,002 | $85,281 | $118,341 | $173,091 | $212,541 | $220,781 |
| 17 | $28,885 | 12.0% | $62,738 | $90,684 | $125,738 | $183,897 | $225,835 | $231,820 |
| 18 | $29,751 | 12.0% | $66,716 | $96,438 | $133,614 | $195,401 | $239,989 | $243,411 |
| 19 | $30,644 | 12.0% | $70,954 | $102,567 | $142,000 | $207,650 | $255,060 | $255,582 |
| 20 | $31,563 | 12.0% | $75,468 | $109,096 | $150,930 | $220,692 | $271,108 | $268,361 |
| | | | | | | | | $281,779 |
| 1. Entries shown in red indicate that income insurance is paid. |
| 2. Bond Fund annuities are graded annuities designed to increase over time to help counter inflation. They begin as if they were a 2% annuity and increase annually at the rate of about 3% with a 5% bond fund return. See Appendix C. |
| 3. Stock fund annuities are variable annuities which begin as if they were a 5% annuity and are adjusted each year to reflect actual stock fund performance. |
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