FAQ 372: Pre-PPA Valuations - Plan where projected, funding and accrued benefit are overrides not calculated in the valuation


I have a couple of questions:

1) The deferred vested employees are not included in the calculation of the 412 and 404 contribution. Why not?

2) PVB for Smith at $112,982 should be the figure I calculate at $8,176. Also, the PVB for Jones, Thomas and Wilson are for last age, not nearest age.

3) RPA Expected CL increase is negative. Why?


You need to run the Retired and Vested Valuation when you run calculations. Check the appropriate option in the window that opens when you select Calculations/Valuation. The system will calculate the present value of vested benefits for terminated and retired participants and reduce the assets by this total value. It will also show up in the View/Costs/CONTRIB screen under Vested Benefits Due.

For Smith, when I reran calculations (including the retired and vested valuation), I got $8,166 as PVB. I suspect the "age last" issue on the others is because the retired and vested valuation wasn't run, thereby leaving the values in the system from last year.

After running the retired and vested valuation, I got a positive Current liability increase (approx $4,000).