FAQ 414: Update--Mid-year Update vs. Annual Update

Problem: I have a plan with a year end of 6/30/06. I am doing the first semi-annual valuation of the year (i.e. from 7/1/05 to 12/31/05). Do I "Update to New Period"?

Solution: You run the "Update to New Period" utility when you want to update the plan after a periodic valuation to get it ready for the next valuation, or when you want to update the plan to start the next valuation of a new plan year. When you want to get the plan ready to do another valuation during the current plan year, you would run a "Mid-year Update". When you want to get the plan ready for the first valuation of a new plan year, you run an "Annual Update". If the 7/1/2005 - 12/31/2005 valuation is the first that you are doing during the year, and this plan is new to ASC, then there is no need to run the Update to New Period utility, since there is no activity that needs to be moved to the prior periods. If, on the other hand, you ran the 7/1/2004 - 6/30/2005 valuation on ASC, and now you need to update the plan to do the first valuation of the 7/1/2005 - 6/30/2006 plan year, then you would use that utility to do an Annual Update on the plan.