; FAQ 777: Takeover Plans - How to calculate Entry Date retroactively for DB

FAQ 777: Takeover Plans - How to calculate Entry Date retroactively for DB

Problem:

On the attached takeover plan with a BOY 1/1/2022 valuation date, ASC won't calculate an entry date prior to the current valuation date. For example, participant Smith's date of hire is 2/12/2014 and their date of entry should be 7/1/2015, but ASC calculates 1/1/2022.


Solution:

In most cases, the DB system does not retroactively calculate dates of entry for a DB plan participant if the eligibility date would have occurred more than 12 months prior to the valuation date. It is recommended to import participant entry dates because the imported date would be the same as the preceding year and an ASC calculated date may not match what has already been vetted prior to the takeover. There are a couple of options to calculate retroactive entry dates if required. When calculating eligibility, use the ASC: Calculations > Valuation \ Partial Calculations option with Eligibility Only checked to quickly update the dates. After reviewing and updating calculated dates, set participant status to A and run full calculations to calculate liabilities.
Participants with status code of “B” will have their DATE > Entry date calculated using the settings on Plan Specifications: General > Identification > ELIG screen. The Entry Date options of 1 through 5 and A through D do not calculate entry dates that are more than 12 months before the valuation date. Options 6 through 9 can retroactively calculate entry dates to the plan's effective date.

If entry dates are imported but other plan dates are not, using status code "C" will not recalculate their entry dates but it will calculate their other dates. Once their dates are as expected, you can change their status code to A for active participants to prevent the system from changing the dates when valuation calculations are run.. For additional suggestions on takeover plans, refer to the DB Reference Manual's Chapter 11 - Takeover Plans from the ASC: Help > Manuals menu.
There may be other options for calculating retroactive entry dates available depending on the eligibility provisions. Contact Support if more advanced options are needed. Depending on the eligibility provisions, different steps would be used.