Understanding Pension Benefit Calculations

Pension Administration uses the plan rules that you set up to calculate pension benefits.

When you run a calculation, you specify the employees and plans to include in the calculation. Additional fields enable you to enter assumptions about information that is not restricted by the plan rules. For example, you can enter a benefit commencement date or a salary escalation rate.

You can also enter overrides to set up what-if scenarios for information that plan rules normally control. For example, you can override the calculated vesting percentage with a 100 percent vesting assumption.

The system assumes that an employee who is not eligible, or who is eligible but not participating, has no benefit accrued. Therefore, a calculation does not end when the calculation determines that an employee is ineligible or not participating.