The Function of Service Provision Screen is used to define the accrual rates that apply to the different ranges of service.
Multiple Function of Service Provisions are needed if the specific relationships to service vary through time, with each provision defining the set of parameters for a given time period.
- Period: details the period of time for which this Function of Service Provision applies. The Effective Date is the start of the first period these particular parameters are applicable and the Stop Date is the end date. If the provision continues to apply without an end date, check the None box for the Stop Date.
- Service Timeline: area for specifying how the annual accrual rates change relative to years of service. Enter the Rates that apply for the applicable ranges of Years entered.
To illustrate, consider a benefit formula that equals 1% per year of service (of some earnings amount) up to 10 years plus 2% per year of service for years between 10 and 20 and 0% for any years of service after 20 years. To define the corresponding Function of Service, enter 10 and 20 in the first two Years fields and 0.01, 0.02, and 0.00 in the first three Rates fields.
- Maximize benefits by allowing for borrowing of hours backwards or forwards: in this section the user can define a maximum number of hours per year that may be allocated to either the past or future, in order to apply a greater benefit rate and maximize a Participant's benefit. The user may also define a minimum which must be met in order for hours to be reallocated from each year. Additionally, there is a checkbox in this section that may be checked in order to prevent hours being reallocated to a year without any accrual.