FAQ 962: Begin of Yr Accrued Benefit field Problem: For a 12/31/19 valuation, how is the Begin of Yr Accrued Benefit on the employee Accrued Benefit screen calculated? Solution: For a BOY valuation plan, the value in this field is equal to the value in the employee's Accrued Benefit field.The remainder of this answer provides an explanation for EOY valuation plans.For an EOY plan, the value in this field is calculated during the Calculations > Valuation program whether the plan is a traditional or cash balance plan. You can choose to use this field (instead of the Prior Accrued Benefit) for funding target calculations by setting 'Use BOY accrued benefit for funding target' to 'Yes' on the Funding \ FUNDMETH screen of plan specifications.For a traditional DB plan, the Begin of Yr Accrued Benefit is the minimum of:a) the plan formula benefit based on Prior Accrual Average compensation for plan benefit purposes, the current benefit formula and, if applicable, the top heavy minimum benefit, andb) the 415 maximum benefit based on the current year's 415 dollar maximum and the Prior Accrual Average compensation for 415 maximum benefit purposes.EXAMPLE #1 Traditional DB PlanValuation date: 12/31/2019Plan Formula: 9% of 3-year average compensation for each year of service up to 10 years.Participant AYears Accrued = 5.00Prior Accrual Average Compensation = 22,500.00Accrual Average Compensation = 23,125.00415 service years = 11415 participation years = 5Prior Accrued Benefit = 7,333.33The Prior Accrued Benefit determined during the 12/31/2018 valuation calculations is the minimum of a) and b):a) Plan formula benefit as of 12/31/2018 = 9% x 22,500 x 4 = 8,100.00b) 415 Benefit using the 2018 limit = 18,333.33 x 4/10 = 7,333.33Begin of Yr Accrued Benefit determined during the 12/31/2019 valuation is the minimum of a) and b):a) Plan formula benefit as of 1/1/2019 = 9% x 22,500 x 4 = 8,100.00b) 415 Benefit using the 2019 limit as of 1/1/2019 = 18,750 x 4/10= 7,500.00Begin of Yr Accrued Benefit = 7,500.00For a cash balance plan, the Begin of Yr Accrued Benefit is the greatest of:a) the accrued benefit determined by projecting the prior balance to the end of the year using the Current Interest Rate, and from the end of the year to normal retirement using the Assumed Future Interest Rate, dividing the result by the APR at retirement using the CASHBAL assumptions, andb) the top heavy minimum accrued benefit, if applicable, andc) the unitized minimum accrued benefit, if applicable.EXAMPLE #2: Cash Balance PlanPlan Effective Date: 1/1/2018Cash Balance ConversionPost-Retirement Mortality - 94 GARInterest Rates:2018:5.0% Current Interest Rate and Post-Retirement Interest Rate4.0% Assumed Future Interest RateAPR SLA Age 62 - 152.1572019:5.5% Current Interest Rate and Post-Retirement Interest Rate3.5% Assumed Future Interest RateAPR SLA Age 62 - 145.471Participant A:As of the 12/31/2018 valuation:AA - 50NRA - 62Expected Contribution - 50,000.00Accrued benefit as of 12/31/2018 = 50,000.00 x 1.04^(62 - 50) / 152.157= 526.11. For the 2019 valuation, this is the Prior Accrued Benefit.As of the 12/31/2019 valuationPrior balance = Expected Contribution from 2018 = 50,000.00Earnings = 50,000 x 0.055 = 2,750.00Begin of Yr Accrued Benefit as of 1/1/2019 = (50,000.00 + 2,750.00) x 1.035^(62 - 51) / 145.471 = 529.41The Begin of Yr Accrued Benefit is 529.41 assuming the top-heavy minimum and the unitized minimum are not applicable.