Calculation Rules Setup

Pension Administration handles pension calculation rules through 19 core functions. You map plan rules to these functions to construct calculation components for the elements of your plan. You then bring the individual components together to produce a final benefit.

The three consolidation functions are run only during periodic processing. Consolidations gather payroll data into monthly or yearly buckets that are then available to other functions during calculations.

Effective dating enables you to keep a history of plan provisions through all the changes the plan has seen. Special group processing enables you to match employees to the correct processing rules.

You can use as many sets of rules as you need. You set up rules and employee groups independently, mix and match them, and assign effective dates to the combinations you create.

The core functions are:

• Consolidated hours

• Consolidated earnings

• Consolidated contributions

• Plan eligibility

• Plan participation

• Service and break

• Vesting

• Benefit eligibility

• Final average earnings

• Cash balance accounts

• Employee accounts

• Social Security

• Covered compensation

• Early and late retirement factors

• Death coverage reductions

• Benefit formula

• Employee-paid benefit

• Optional forms of payment

• Section 415 limits