Quick Plan Review

Before importing participant data, you should do a quick review of the Plan Document created by the New Plan Wizard with a focus on the following items:

Actuarial Equivalence

It is likely that you will need to change the plan's Actuarial Equivalence Definition. To do this, expand out the Actuarial Equivalence Definitions tree branch (by clicking on the small plus sign) and then expand out the plan's Actuarial Equivalence Definition (by clicking on the plus sign next to the name - most likely call AEQ_Plan). This will display the Effective Date of the Plan Provision.

Double-click on the date to display the rules for that provision. Here you should choose both the mortality and interest rate to be used for converting the single normal form of benefits to other options.

Normal Retirement Date

The New Plan Wizard will assume the plan has a Normal Retirement Date equal to the greater of age 65 or 5 years of participation service.

If your plan uses something other than this, you will need to change it. To do this, expand out Derived Dates and then expand out the Derived Date Definition used for Normal Retirement Date (most likely named NRD). Double-click on the Provision Effective Date to display the rules for Normal Retirement Date. Here you will be able to change the date requirements (age, service, or points) as well as the rounding to be applied to the resulting date.

Average Earnings

If your plan includes an Average Earnings Definition, the New Plan Wizard will assume the plan has an average based upon the highest consecutive 5 years of the last 10 years. If your plan uses something other than this, you will need to change the plan's Average Earnings Definition.

To do this, expand out Average Earnings and then expand out the Average Earnings Definition used for the plan (most likely named avgComp). Double-click on the Provision Effective Date to display the rules for the plans average earnings. Here you will be able to change the definition's averaging period, lookback period, and precedence.

In addition, you must check your Averaging Unit Determination. For most plans, earnings are determined on a calendar year basis. If your plan uses something other than this (7/1 - 6/30 for example), the Calendar Anniversary must be changed. You will need to make the same change for the Average Earnings Definition that is used for the valuation extract (most likely called avgCompVal).

Save the Document

While you are certainly not done coding the plan at this point, you are well on your way. Save the Plan Document by choosing File and then choosing Save.

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