This paper discusses the problem whether an office should issue with-profit deferred annuity contracts, and having concluded that with-profit contracts should be issued, it discusses a consistent system for the calculation of premium rates, the valuation of the business and the distribution of profits. Primarily, however, it describes what has been done in one particular case and refers but briefly to some other possibilities, there being no doubt that the discussion will embrace other systems of distribution. The approach in this particular case started from a large existing portfolio of non-profit group deferred annuity contracts and the system of distribution was designed to be applicable to group business. In the result, however, a system has emerged which could be applied to individual contracts and which has been extended to embrace group deferred annuity contracts carrying the option to take a cash sum at the maturity date. In the latter application it is sound under different systems of taxation.