PensionSoft Help | DB Precision Valuation User Guide

DB Precision Valuation User Guide

Use this guide to set up your Sponsor and Plan to perform valuation calculations and learn how to interpret results.

Looking for help with a specific valuation screen or field? Use Valuation Screen Help for screen items and descriptions organized by their exact location within DB Precision.

Overview of Valuation Steps

Configure Sponsor AssumptionsDefine high-level actuarial assumptions, including decrement probabilities, interest rates, mortality, COLA, and Reported Amount projections.
Configure Plan ParametersIdentify the earnings and service used by valuation and configure Formula Derived Items, Valuation Definitions, and effective-dated provisions.
Create Benefit ItemsDefine each benefit stream, eligibility period, adjustments, payment forms, and attribution method.
Run Valuation CalculationCreate the data capture, select the plan definition and assumption bases, and run a plan or participant valuation.
Evaluate OutputNavigate plan and participant results and drill into methods, decrements, benefit items, and present-value factors.

Valuation topic Details

Plan Configuration Plan-level definitions for earnings, service, and benefit formulas

Average Earnings for ValuationEarnings and PVFS definition source settings Service Definitions for ValuationParticipation, credited, and vesting service setup Formula Derived Items for ValuationBenefit base and cost-method projection settings Valuation DefinitionDefine eligibility for benefits within a definition Valuation ProvisionBenefit items, employee contributions, and inactive benefit overrides

Benefit Items Benefit payments, eligibility, payment forms, and attribution

Benefit ItemsBenefit amounts, eligibility, and payment forms COLABenefit-level COLA settings Benefit AttributionAttribution inputs by actuarial cost method

Running a Valuation Prepare data, run calculations, and manage valuation groups

Valuation Database CaptureCapture participant data for valuation Valuation InputsSelect configuration for valuation run Run ValuationKick off a valuation run Valuation GroupsRerun saved runs and group compatible valuations

Valuation Output Review valuation results and supporting detail

Valuation OutputNavigate valuation output Valuation Output FieldsDescriptions of plan and participant output fields

Calculation methodology

DecrementsDecrement precedence and timing methodology Liabilities OverviewGeneral calculation methodology and cost method overview Present Value of Future Benefits (PVFB)PVFB cost method calculations Unit Credit (UC)Unit Credit cost method calculations Projected Unit Credit (PUC)Projected Unit Credit cost method calculations Entry Age Normal (EAN)Entry Age Normal cost method calculations Tax-Max and PBGCTax-Max and PBGC calculations