An Average Earnings Provision defines the earnings units, selection rules, limits, and exclusions that apply during an effective period.

• Effective Date: Defines the first date for which the provision applies.
• Stop Date: Defines the last date for which the provision applies. Select None to leave the provision open-ended.

• Highest: Selects the highest individual earnings units within the lookback period.
• Highest Consecutive: Selects the consecutive block with the highest average.
• Final: Selects the final eligible units within the lookback period.

• Averaging Period: Specifies the number of units included in the average. Use the Partial Period Rules screen to define how incomplete first, interim, and final units are treated.
  • Career: Includes every eligible unit in the average.
• Lookback Period: Specifies the number of units searched when selecting earnings.
  • Career: Removes the fixed lookback limit.
• Unit: Selects the time unit used to construct and average earnings periods.
• Group units by year: Combines shorter units into annual groupings before applying Earnings Precedence.

• Determined using service definition: Includes periods in which the selected Service Definition accrues.
  • Name: Selects the Service Definition used to determine eligible periods.
• Determined without regard to any service definition: Measures eligible periods without requiring service accrual.

• Periods occur at regular intervals as defined by the following: Creates fixed units using a calendar anniversary.
  • Calendar Anniversary: Defines the recurring boundary for the averaging units.
    • Month: Specifies the calendar-anniversary month.
    • Day: Specifies the calendar-anniversary day.
• Create units backward from term date (rounded as follows): Builds units backward from the termination date.
  • Type: Selects the rounding type applied to the termination date.
  • Unit: Selects the unit used when rounding the termination date.
• Create using Service Definition: Uses the measurement periods created by the selected Service Definition.

• Static Limits: Applies fixed limits to each earnings unit.
  • Minimum: Specifies the fixed minimum amount. Select None to remove the minimum.
  • Maximum: Specifies the fixed maximum amount. Select None to remove the maximum.
• Variable Limits: Applies effective-dated minimum and maximum amounts.
  • History: Opens the effective-dated limit history.
• 401(a)(17) Limits Apply: Applies the statutory compensation limit to each earnings unit.
• Prorate limits for partial annual periods: Reduces applicable annual limits in proportion to a partial period.

• Exclude Breaks in Service when measuring periods: Prevents break-in-service units from consuming the averaging period.
• Exclude Dropout Periods when measuring lookback: Prevents dropped units from consuming the lookback period. Use the Dropout/Adjustment Rules screen to define zero-earnings, threshold, and adjustment rules.
• Exclude Zero Earnings Periods when measuring lookback: Prevents zero-earnings units from consuming the lookback period.
• Ignore partial excluded periods when measuring lookback: Prevents excluded partial units from consuming the lookback period.

• Reported Amounts: Lists the earnings sources included in the provision. Open the Average Earnings Reported Amount screen to configure a row's source, combination, allocation, annualization, limits, and formula overrides.

• Advanced: Opens the Average Earnings Provision - Advanced screen for compensation-limit treatment, final termination date adjustments, and other period-construction options.