--- .ARC file contains revenue and cost (that is, solvency) statistics for the employer-sponsored-pension immediate annuity provider and for the employer-sponsored-pension deferred annuity provider. The PENSIM runNNNNN.arc file has no heading lines and no summary lines. The file contains present value of annuity provider revenue and cost by scenario and gender for a birth cohort sample. The statistics on each line are separated by the tab character. The meaning of annuity provider revenue depends on the value of OUTPUT.arc_immyrs. If arc_immyrs=0, then revenue in a year is equal to annuity contract sale proceeds in that year. If arc_immyrs>0, then annuity contract sale proceeds are not immediately recognized, but are invested in a ladder of zero-coupon Treasury bonds (each one of which has a yield equal to the current Treasury bond yield) that match the expected annuity contract payments for up to arc_immyrs years. In other words, when arc_immyrs>0, the annuity provider pursues a cashflow matching strategy in an attempt to immunize its annuity contract payment liabilities. The logical structure of a line is as follows: ( 1) scenario number ( 2) gender: female, male, both ( 3) present value of immediate annuity provider revenue (in billions of dollars) with present value expressed in year the cohort turns 65 and calculated using nominal annual revenues weighted by sample_pct and using nominal Treasury interest rates plus OUTPUT.arc_spread as the discount rate in each year ( 4) present value of immediate annuity provider cost (in billions of dollars) with present value expressed in year the cohort turns 65 and calculated using nominal annual costs weighted by sample_pct and using nominal Treasury interest rates plus OUTPUT.arc_spread as the discount rate in each year ( 5) the ratio of (3) and (4) -- see IMPORTANT NOTE below ( 6) present value of deferred annuity provider revenue (in billions of dollars) with present value expressed in year the cohort turns 65 and calculated using nominal annual revenues weighted by sample_pct and using nominal Treasury interest rates plus OUTPUT.arc_spread as the discount rate in each year ( 7) present value of deferred annuity provider cost (in billions of dollars) with present value expressed in year the cohort turns 65 and calculated using nominal annual costs weighted by sample_pct and using nominal Treasury interest rates plus OUTPUT.arc_spread as the discount rate in each year ( 8) the ratio of (6) and (7) -- see IMPORTANT NOTE below ( 9) meaningless statistic whose value is always zero (10) pv deferred annuity revenue for indivs who claim at age 61 or less (11) pv deferred annuity cost for indivs who claim at age 61 or less (12) solvency ratio for indivs who claim at age 61 or less: (10)/(11) (13) pv deferred annuity revenue for indivs who claim at age 62 (14) pv deferred annuity cost for indivs who claim at age 62 (15) solvency ratio for indivs who claim at age 62: (13)/(14) (16) pv deferred annuity revenue for indivs who claim at age 63 (17) pv deferred annuity cost for indivs who claim at age 63 (18) solvency ratio for indivs who claim at age 63: (16)/(17) (19) pv deferred annuity revenue for indivs who claim at age 64 (20) pv deferred annuity cost for indivs who claim at age 64 (21) solvency ratio for indivs who claim at age 64: (19)/(20) (22) pv deferred annuity revenue for indivs who claim at age 65 (23) pv deferred annuity cost for indivs who claim at age 65 (24) solvency ratio for indivs who claim at age 65: (22)/(23) (25) pv deferred annuity revenue for indivs who claim at age 66 (26) pv deferred annuity cost for indivs who claim at age 66 (27) solvency ratio for indivs who claim at age 66: (25)/(26) (28) pv deferred annuity revenue for indivs who claim at age 67 (29) pv deferred annuity cost for indivs who claim at age 67 (30) solvency ratio for indivs who claim at age 67: (28)/(29) (31) pv deferred annuity revenue for indivs who claim at age 68 (32) pv deferred annuity cost for indivs who claim at age 68 (33) solvency ratio for indivs who claim at age 68: (31)/(32) (34) pv deferred annuity revenue for indivs who claim at age 69 (35) pv deferred annuity cost for indivs who claim at age 69 (36) solvency ratio for indivs who claim at age 69: (34)/(35) (37) pv deferred annuity revenue for indivs who claim at age 70 (38) pv deferred annuity cost for indivs who claim at age 70 (39) solvency ratio for indivs who claim at age 70: (37)/(38) (40) pv deferred annuity revenue for indivs who claim at age 71 or more (41) pv deferred annuity cost for indivs who claim at age 71 or more (42) solvency ratio for indivs who claim at age 71 or more: (40)/(41) IMPORTANT NOTE: The value of the revenue-to-cost ratio statistics, (5) and (8), should be no less than one. A ratio of exactly one ensures that provider revenues cover the cost of making the annuity payments, but do not cover any administrative or marketing costs or any profits on reserve capital held by the provider. ANOTHER NOTE: in a stochastic run with more than one scenario, be sure that the all-scenario revenue-to-cost ratio for each gender is at least one. For example, compute the female all-scenario ratio at the Windows command prompt in the directory containing the runNNNNN.arc file using the following two commands: > gawk "$2~/female/" runNNNNN.arc | mean - 3 > gawk "$2~/female/" runNNNNN.arc | mean - 4 The first command calculates the mean value across all scenarios of the revenue statistic (3), while the second command calculates the mean value across all scenarios of the cost statistic (4). The all-scenario ratio is simply the first mean divided by the second mean.