Example: Corrective Retro—No Exceptions

In this example, Earning 1 rate changes from 100 to 120; effective date is in period 1; notified in period 2:

Recalc Option Calendar Period 1 Prior Results (Old Value) Re-Calculation (New Value) Deltas Corrective Replace Old Value with New Value Forward Y/N

Always

Earning 1

100

120

20

Y

N

Always

Deduction 1 (flat amount)

30

30

0

Y

N

This table shows the processing results for the example above:

Calendar Period 2 Current Results Retro Adjustment

Earning 1

120

None

Deduction 1 (flat amount)

30

None

In this example, only Earning 1 generates a retro delta. The new value of Earning 1 replaces its old value.