PensionSoft Help | Export Assumptions

Export Assumptions

The Assumptions tab on the Export Screen lets you review the projection assumptions and missing-data rules used for this export. Shared projection settings are also documented on the Assumption Provision page.

Reported Amounts:
for indicating how to project Reported Amounts. You need to edit each Reported Amount listed to enter its assumption.
- List: this box lists all Reported Amounts for the Plan Sponsor along with a summary of the type of assumption selected (i.e., None, Pct, Amount) and value assigned. Double click on each Reported Amount to edit the assumption via the Assumption Reported Amount screen.
- Use Estimated Amounts: by checking this box, you indicate that you want the system to use Reported Amounts identified as an estimate (via an estimated indicator) when running calculations. If this box is not checked, estimated amounts will be ignored.
- Ignore historical dates after calculation date: check this box if you do not want the system to use any Historical Dates that occurs after the calculation date when running calculations.
- Ignore amounts with dates more than “x” days after calculation date: use this area to tell the system to not use Reported Amounts with an effective date that is a certain number of days after the calculation date, as entered in the box provided. If a number of days is entered here, the system will only use Reported Amounts with an effective date within that number of days from the calculation date.
- Assume Suspension of Benefits Notice is issued at NRD (if none): Assumes that the notice was issued at normal retirement date when no notice is recorded.
Beneficiary Age Assumption: use this section to assume a fixed age gap between participant and beneficiary. Check the box Use actual beneficiary age if data exists to ignore the fixed age gap when the beneficiary date of birth has been specified in a participant record.
- Male participants: Enters the assumed number of years the beneficiary is older or younger than a male participant.
- Female participants: Enters the assumed number of years the beneficiary is older or younger than a female participant.
Published Interest Rates:
for specifying how various published interest rates are to be projected for periods beyond the calculation date. Includes sections for the following rates: Treasury Rates, 120% FMT, PBGC, and Segment Rates. Select one of the following projection options for each:
- Fixed rate: select to assume a flat interest rate for periods beyond the calculation date. (Enter 0.05 for 5.00% for example.)
  - S1 / S2 / S3: Enters the fixed rates for the three segment-rate periods when Fixed rate is selected for Segment Rates.
- Latest non-zero rate: choosing this option will cause the system to find the latest published interest rate entered in DB Precision prior to the calculation date and assume that that rate applies for all future periods.
- Latest plan year rate: choosing this option will cause the system to find the latest valid interest rate for the plan year prior to the calculation date and assume that that rate applies for all future periods.
- Latest applicable rate: choosing this option will cause the system to use the latest reset date and lookback combination with a known interest rate and assume that rate applies for all future periods.
Government Tables Increase Rates:
for specifying the rate used to project various government tables for periods beyond the calculation date - includes the Taxable Wage Base, 401(a)(17) Limit, and 415(b) Limit. Select one of the following projection options for each:
- Fixed rate: select to assume a flat interest rate for periods beyond the calculation date. (Enter 0.05 for 5.00% for example.)
- Function of salary scale: choosing this option will cause the system to use the salary scale (either entered on the portal or the highest rate for all salary-type Reported Amounts) and increase or decrease (if negative) by the entered value. (Enter -0.025 to set a rate equal to the salary scale reduced by 2.5% for example.)
Missing Data/Sponsor Assumption Definition: Selects missing-data rules and loads sponsor assumptions for this export.
- Missing Data Definition: Selects which rules to use for missing participant data in this export. Define these rules using the Missing Data Definition screen.
- Sponsor Assumption Definition: Selects the sponsor’s assumption definition to load into the calculation assumptions.
Store inputs in Calculation History: Stores all calculation inputs, including assumptions and values entered on the Other tab, so they can be retrieved later.