Use the result tree to move from plan totals or an individual participant to the benefit, decrement, payment form, probability, and projection-year detail supporting the selected value.

• Current Earnings: This is the annual earnings amount expected for the coming year. For example, if a plan has a valuation date of January 1, this is the amount for all employees that is expected to be paid to an employee for the year starting Janaury 1 through December 31.
• Present Value of Future Benefits (PVFB): The Present Value of Future Benefits (PVFB) is separately determined for each Benefit Component and the displayed both in total as well as grouped by decrement (retirement, death, disability, and withdrawal).

  To calculate PVFB for a particular Benefit Component, you must first determine the PVFB for each individual Benefit Component and for each future age/year, beginning with the year immediately following the Valuation Date and ending at age 120. Once you have the individual PVFB at every age/year, you must then sum them to get the PVFB for that component.

  To calculate PVFB for an individual age/year, the amount equals the probability of decrement multiplied by the corresponding benefit amount.

  This amount must then be converted in value from an annual benefit to a value using an annuity factor that reflects the payment for as well as the date the benefit is payable

  Finally, this amount is then discounted back to the valuation date by multiplying by the probability of being an active employee as of the beginning of that year and further discounted for interest.

  For example, if you were checking the retirement benefit of a person currently age 30 and wanted to evaluate the PVFB at age 45 of $1,200 per year payable as a monthly amount until death beginning at 65, that amount would be determined as follows:

  • ₁₅p₃₀: Probability of a person aged 30 being employed at age 45.
  • v¹⁵: 15-year interest discount.
  • q^(Ret)₄₅: Probability of retirement at age 45.
  • ₂₀a⁽¹²⁾₄₅: Monthly annuity factor of a person aged 45 payable at age 65.

  PVFB₄₅ = $1,200 x ₁₅p₃₀ x v¹⁵ x q^(Ret)₄₅ x ₂₀a⁽¹²⁾₄₅

  To then get the total PVFB for the benefit component, you would sum of the PVFB at each age or:

  $${\mathrm{PVFB}}_{\mathrm{Total}}={\displaystyle \sum _{x=35}^{120}}{\mathrm{PVFB}}_x$$

• Middle of Year Decrements: Uses the Middle of year timing selected for projected decrements. Review Decrement Timing on Valuation Assumption Provision.
• Decrement Competition: Reflects the selected Decrement Precedence treatment: Adjust all rates, Do not adjust any rates, or Only adjust mortality. These choices are configured on Valuation Assumption Provision.