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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
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