Sponsor Assumptions define the high-level actuarial assumptions applied to a valuation, including interest, mortality, decrements, COLA, marriage, and Reported Amount projections.
A Valuation Assumption Definition is the named funding or accounting assumption set selected for a run. The provision effective on the valuation date supplies its detailed assumptions.
Type — Determines whether the assumption definition is used for funding or accounting valuations and which related results are available.
Effective Date — Defines when the provision becomes effective. A provision is used when the valuation date is on or after its effective date and until a later provision supersedes it.
These checkboxes control which available liability and normal-cost measures appear in output. More than one method can be displayed for the same valuation.
Unit Credit — Displays Unit Credit liability and normal cost. An ERISA funding definition labels the liability Target Liability.
Projected Unit Credit — Displays Projected Unit Credit liability and normal cost.
Entry Age Normal — Level Dollar — Displays the level-dollar Entry Age Normal liability and normal cost.
Entry Age Normal — Level Percentage of Pay — Displays the pay-related Entry Age Normal liability and normal cost using valuation earnings.
Attained Age Normal — Level Percentage of Pay — Would display a pay-related attained-age-normal result. (Currently unavailable)
These annual rates project statutory limits only when the related plan calculation uses that limit.
Taxable Wage Base — Projects the Social Security taxable wage base used by covered-compensation and Taxable Wage Base calculations.
401(a)(17) Limit — Projects the qualified-plan compensation limit when an earnings or benefit calculation applies IRC §401(a)(17).
415(b) Limit — Projects the defined benefit dollar limit when a benefit calculation applies IRC §415(b).
Fraction of People Married — Weights the single and married forms configured for a benefit item.
Years Husband is Older than Wife — Determines the assumed beneficiary age for married forms. Known beneficiary birth date and sex replace the assumed age difference and beneficiary sex for an inactive participant.
Minimum Funding Interest Rate — Supplies the primary discount base for funding or accounting results.
Maximum Funding Interest Rate — Supplies the discount base for Tax-Max and the alternate PBGC method.
PBGC Premiums — Determines whether PBGC liability is calculated using published premium segment rates or the Maximum Funding Interest Rate.
Sponsor COLA — Supplies the default increase assumption for benefit payments after commencement. Tax-Max and PBGC use the funding Sponsor COLA.
Fixed or Table-based — Applies one annual increase or retrieves an age-based increase from a COLA Table.
Reported Amount Projection — Projects earnings and other recurring participant amounts using a fixed increase, fixed amount, or Salary Scale Table.
Valuation Earnings — Provides the earnings projection used for future benefit calculations, PVFS, and level-percentage-of-pay Entry Age Normal.
Pre-decrement Mortality — Applies while an active participant remains exposed to retirement, termination, and disability.
Post-decrement Mortality — Applies before and after payment commencement for terminated, disabled, and retired participants.
Survivor and Lump Sum Mortality — Supplies beneficiary mortality and the mortality used by qualifying life-contingent lump-sum forms.
Retirement — Supplies annual retirement probabilities using a fixed age or a Sponsor Retirement Probability Table.
Termination and Disability — Supplies annual probabilities from the selected System tables.
Timing and Competition — Determines when decrements occur during the year and how overlapping active decrement rates are adjusted.
Variations — Changes a supported assumption by participant value, projection duration, or calendar year.