FAQ 264: Coding a tiered formula

Problem: A plan is cutting back benefits & the proposed final average pay formula is as follows - 4.25% for the first 7 years and 2% for the next 10 years plus .65% in excess of covered compensation for 17 years. How can this be coded in ASC?

Solution: - UNITBENF screen: enter 2 in the Pct of Comp field, .65 in the Pct of Excess field, enter the covered compensation table in the Excess over field, and enter 17 in the Maximum Years field - FLATBENF screen: enter 15.75 (ie 7 x 2.25) in the Pct of Comp field and enter 7 in the Reduce for Years Less than field for years less than 7. - ACCRUAL screen: enter Unit per Formula for Type of Accrual and 17 in the Years for Full Accrual field. Make sure the service definitions on the Flat Benefit, Unit Benefit, and Accrual screens match.