Valuation
DB Precision Valuation User Guide

Use this guide to set up valuation calculations and interpret results.

Getting started
  1. Configure Sponsor AssumptionsDefine high-level actuarial assumptions, including decrement probabilities, interest rates, mortality, COLA, and Reported Amount projections.
  2. Configure Plan ParametersIdentify the earnings and service used by valuation and configure Formula Derived Items, Valuation Definitions, and effective-dated provisions.
  3. Create Benefit ItemsDefine each benefit stream, eligibility period, adjustments, payment forms, and attribution method.
  4. Run Valuation CalculationCreate the data capture, select the plan definition and assumption bases, and run a plan or participant valuation.
  5. Evaluate OutputNavigate plan and participant results and drill into methods, decrements, benefit items, and present-value factors.
Valuation topics
Plan Configuration Plan-level definitions for earnings, service, and benefit formulas
Average EarningsEarnings and PVFS definition source settings Service DefinitionsParticipation, credited, and vesting service setup Formula Derived ItemsBenefit 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
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
Additional valuation reference
Formula Inventory
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