What Is Participation Rate In Annuities? 
Generally speaking , tax deferred index annuities use domestic and foreign indices for its crediting method . But there are three crediting method types within any one policy -LRB- sometimes more -RRB- that play a role in what you receive from the indice performance : spreads , rate caps and participation percentage . Participation determines what portion of the performance is credited to the annuity policy , i.e. 70 % of a 10 % net return would credited 7 % . 