Plan assumptions supply the earnings, service, formulas, and effective-dated plan provisions used in valuation calculations.
The valuation engine uses one Average Earnings Definition as its source of current and projected earnings.
Use earnings for valuation extract — Points the valuation engine to this definition when developing the earnings array and present value of future salary (PVFS).
Only one active Average Earnings Definition may be selected. Its Average Earnings Provision should use annual units and normally uses a career lookback so projected calculations retain the earnings history needed at future decrement dates.
Three checkboxes on a Service Definition identify the planwide service results shown in valuation detail and standard extracts. Only one active definition may hold each designation.
Participation Service — Supplies Date of Participation and participation service to valuation results.
Credited Service — Supplies Credited Service Date and credited service to valuation results.
Vesting Service — Supplies Vesting Service Date and vesting service to valuation results.
A Formula Derived Item can supply a reusable benefit amount, filter, or date. Additional valuation settings are needed when the item supplies a Benefit Base for component-based attribution, restricts formula dates for Unit Credit or VBO, or applies nearest-birthday date rounding.
Advanced Valuation SettingsThe Valuation Definition selected for a run identifies the population and the effective-dated Valuation Provision containing the benefit items to be valued.
Filter — Includes a participant when the formula returns a nonzero value. A zero result excludes all benefit items within this Valuation Definition for that participant.
Type — Identifies the definition as a Qualified or Non-qualified Valuation. Qualified Valuations can produce the applicable Tax-Max and PBGC results.
The latest Valuation Provision effective on or before the valuation date supplies the provision-level formulas. Each benefit stream is configured as a benefit item within that provision.
Effective Date — First valuation date for which the provision and its benefit items apply.
Employee Contributions — Projects employee contributions while the participant remains active. Funding and accounting output reports their present value separately and offsets gross normal cost by the current-year contribution amount.
This is different from Return of Employee Contributions Balance, which replaces a nonvested benefit item when its Vesting Adjustment is exactly zero.
Inactive Benefit Override — Filter — Selects stored inactive benefits whose future payment pattern is replaced.
Inactive Benefit Override — Annual Benefit — Defines the replacement annual benefit pattern for the selected inactive benefits.