FAQ 496: Fresh Start - Coding a wear-away formula

Problem:

What is the best method to set-up a plan in ASC when the Fresh Start is with Wear-away?


Solution:

Code the Fresh Start Date on the General \ Identificationt \ ID screen of specs.

Code the General \ Compensation \ COMPAVG Benefit Add-ons as 2 - Forced Minimum Benefits.

Code choice "5 - Fresh Start" on the General \ Benefits \ formula screen.

Make sure status "A" employees are changed to "C" (except for postponed retirees).

In the employee's Accrued Benefit screen, code in the Grandfathered benefit as Prior Accrued Benefit if the fresh start date is one year or more in the past. If the Fresh Start date is the current valuation date then enter the grandfathered accrued benefit in all three add on to benefit fields in the Projected Benefit screen of the employee record.