DB Precision has a standard report called the Lifecount Reconciliation Report which users can generate which shows participant counts on two snapshot dates as well as reconciles status changes between the two dates.

By producing a lifecount reconciliation report using DB Precision, you will be able to see the changes in status since the last valuation date. By reviewing the report, you can then spot-check the results and possibly identify problems.

To produce the report, open the Plan Document and then select Valuation - Lifecount Recon from the main ribbon. This will open the Lifecount Reconciliation screen. Specify the Start Date (prior valuation date) and Stop Date (current valuation date) and then press OK to produce the report.

For detailed instructions on items found on this screen, click here.

The results are presented in a print-preview report that you can then either print to paper/pdf or view on-screen.

When checking the report, you should do the following:

• Check Prior Period Counts: confirm that prior year counts match the prior valuation report. If changes were made outside of DB Precision last year or a snapshot was accidentally run after last year's data cycle was completed, these counts might not line up. If this happens, you will need to be able to understand the differences between these two prior year counts.
• Check Change Counts: quickly look at the counts. If you have new entrants but the plan is frozen , or if you have large numbers of terminations, then there might be a problem with the data or plan coding. Check to see if your participant counts changed significantly from the last valuation.

  One way to check the counts is to do your own quick data reconciliation. Doing a full reconciliation defeats the purpose of having DB Precision do this work. However, you also need to be comfortable with the results. By scanning the data imported and counting new terminations, retirees, deaths, and new participants, you can look to see whether those changes are similar to the DB Precision reconciliation.

• Spot Check Participant Changes: spot check a few individuals that are listed as terminated or retired on the report and confirm that the client identified these same individuals as such.
• What if a Problem is Found?: if there is a problem because a mistake was made, you may need to make manual changes to correct the data, reimport, or even restore the data using the participant data backup and repeat the subsequent steps. You would then re-run the snapshot and produce another lifecount reconciliation until your counts appear to be correct.
• Common Reasons that Status is Incorrect in DB Precision: the following are common reasons that status is incorrect:
  
  
  • Ineligible Versus Active: if the plan's participation service is not properly coded or there is some missing item such as a group code reported amount required for plan eligibility, then DB Precision will not be able to properly distinguish between actives and ineligibles. If this occurs, you will either need to add the group code for certain participants or modify the plan's service coding.
  • Active/Non-accruing: if credited service is not accruing for a participant, DB Precision will treat the participant as non-accruing. For hard-frozen plans, all participants are treated as non-accruing by DB Precision.
  • Rehired Terminated Vested: if a participant was terminated vested and then rehired, it is not enough to just provide a rehire date. You will also need to delete the stored benefit. Otherwise, DB Precision will continue to treat the person as terminated vested.
  • Retired/Terminated Vested Counts: if a participant has a payment start date in the future, they will always be treated as terminated vested. If you believe that the participant is retired rather than terminated vested, you will need to modify that payment date to be something that is on or prior to the snapshot date.

    Similarly, if a participant has a payment start date in the past and no deferred indicator checked, DB Precision will treat that participant as retired. If you believe the participant to be terminated vested, you will need to check the deferred indicator box for their benefit payment.

  • Beneficiaries with Employment History: if a participant receiving a survivor annuity also has a hire date, DB Precision will treat this participant as both active and a beneficiary. You need to delete the hire date for this participant unless that person is truly both active and a survivor.

The following features of the report are worth noting:

• Multiple Status Changes During Period: the report only compares changes between the beginning and end of the period so if a person had multiple changes during the period (active to terminated and then retired for example), those interim changes are not shown.
• Dual Status Participants: for participants that are dual status (active and beneficiary for example), they will be treated as two participants in the report and identified with a footnote on the first page of the report.
• Deferred Beneficiaries: these participants are included in the terminated vested group but then identified in a footnote on the first page of the report.
• Transfers In/Out: if you ran the report for a particular group code, you may see transfers either in or out of the group if participants switched between groups during the period.
• Alternate QDRO Payees: DB Precision will treat these as participants in the counts shown even though they should not be counted for certain government filings.
• Retiree Deaths: DB Precision distinguishes between deaths with and without beneficiaries by looking for an SSN for a beneficiary if a survivor benefit is due. If a participant with that SSN is being paid a survivor annuity, then DB Precision will treat that participant as a death with a beneficiary. Otherwise, it is assumed that there was no beneficiary on death.

  For retirees who have died, you should check that the participant and beneficiary are linked by SSN if a survivor annuity is due.

  If you open the beneficiary and copy that person (right-click the name and select Copy from the resulting menu). You can then open the deceased participant and paste as a beneficiary (right-click Beneficiary Information and select Paste as Beneficiary) to create this link.