Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxl!houxm!houxz!vax135!floyd!whuxle!mit-eddie!genrad!decvax!mcnc!ecsvax!dgary From: dgary@ecsvax.UUCP Newsgroups: net.followup,net.women Subject: Re: Women, Insurance, and everything Message-ID: <2638@ecsvax.UUCP> Date: Fri, 1-Jun-84 18:16:42 EDT Article-I.D.: ecsvax.2638 Posted: Fri Jun 1 18:16:42 1984 Date-Received: Tue, 5-Jun-84 08:43:47 EDT References: cepu.266 Lines: 25 > From: scw@cepu.UUCP Fri May 25 09:40:55 1984 > > The problem with paying women less retirement pay is that usually retirement > pay is an annuity, (that is you are not getting back what you put in but > rather the interest on same) or some mixture of annuity+principle. The > ammount of an annuity depends only on how much you payed in and the interest > rate, not on how long you draw on it. An annuity is an inverse installment loan. Annuity payments include principle and interest. A lifetime annuity is an annunity paid based on your expected length of life (those who live less get cheated, those who live longer make out). The issue is not whether annuity payment amounts should be based on life expectancy, but whether gender is a valid predictor of life expectancy (especially since most annuities have used no other). As I noted before, a major study in Pennsylvania has indicated that almost all of the difference in male and female life expenctancy is attributatble to smoking. D Gary Grady Duke University Computation Center, Durham, NC 27706 (919) 684-4146 USENET: {decvax,ihnp4,akgua,etc.}!mcnc!ecsvax!dgary