PAT06B - Detailed Calculation Worksheet

This SQR provides a worksheet of the results for a particular calculation. It includes basic calculation data and inputs and the detailed results for each calculation component.

The Employment History section provides a history of action and reason codes and the employee types in a participant's job record.

The Plan Overrides section shows any projection assumptions you entered, any beneficiary overrides, and your choice of whether to grant full service credit to participants with purchasable service balances.

The Beneficiary Information section shows whether a spouse (the "plan beneficiary") meets eligibility requirements for an automatic benefit. This section also provides personal data about any non-spouse ("contingent") beneficiary.

The Function Result Overrides section shows any overrides you entered for specific plan components.

The Optional Forms section shows each of the optional forms of payment that is available to the participant. Depending on how you set up the calculation job stream, there may be multiple form sets based on different commencement dates, typically normal and early retirement.

The following information is printed for each form:

  • Form: The form of payment (for example, a single life annuity, a joint and survivor, or a lump sum).

  • Guaranteed Payment: The number of years of guaranteed payment (for example, 5 years).

  • Percent Continued: The percentage continued if there is a survivor benefit.

  • Factor: The factor used to convert the benefit to this optional form of payment.

  • Type: The payment type. Each form in a form set has a different type of payment. For example, joint and survivor forms show both retiree amount and beneficiary amount. (A "plan beneficiary amount" is for a participant's spouse, and a "nonspouse beneficiary amount" is for any other beneficiary). Level income option forms show both retiree pre-SSRA amount and retiree post-SSRA amount.

  • Total (Unlimited), NonTax (Unlimited), Total (Limited), NonTax (Limited): Because qualified pension benefits are limited under the Internal Revenue Code Section 415, the report prints both the unlimited and limited amounts. The limited amount is the actual payable amount. The unlimited amount is informational only.

    For each payment type, the report prints the total amount and any nontaxable portion of that amount for both the unlimited and limited amounts.

The Benefit Calculation section shows the normal and early retirement dates and all the benefit amounts that were calculated. This may include reduced and unreduced benefits, employee-paid and employer-paid benefits, grandfathered benefits, and any other benefits that your organization calculates.

For each benefit, the report prints the benefit amount, a description of the benefit, and a description of the normal form of payment, including any automatic spouse benefit. The amounts shown do not reflect reductions caused by applying Internal Revenue Code Section 415 limits.

The Service section shows all the service calculations for the participant. Depending on how you set up the calculation jobstream, there may be multiple service calculations for participation service, vesting service, and service credit.

The following information is printed for each service calculation:

  • Description of the type of service.

  • Years as of Event Date: The final amount of service accrued as of the event date.

  • Period Start, Period End: The start and end dates of the service period.

  • Process Through: The end of the period for all complete periods and the event date for the final period.

  • Hours: The number of hours the worker has. This is zero for elapsed time service calculations.

  • Breaks for Period: Whether the period counts toward breaks. This is 1 for break periods and zero for non-break periods.

  • Accumulated Breaks: The number of consecutive breaks, including this period.

  • Service w/ Breaks: The amount of service for which the worker receives credit after break rules are applied. This is the basis for the total service accrual.

  • Service w/o Breaks: The amount of service for which the worker receives credit before break rules are applied. This is informational only.

  • Service Adjustment: The total adjustments applied to service during the period. Service is commonly adjusted when workers withdraw contributions and thus forfeit their previous service, when workers repay contributions to restore forfeited service, and when workers purchase service.

  • Accumulated Service: The total amount of service accumulated as of the period end date, taking into account breaks in service and any service forfeiture or restoration.

Note:

If you enter a function result override for a service calculation, there are no detailed results.

The Final Average Earnings section shows all the final average earnings (FAE) calculations for the participant.

The report prints the FAE amount and its description, and a detailed breakdown of the participant's consolidated earnings history. If your earnings definition uses only a specified number of periods, the report only prints rows for as many periods as the system needed to evaluate to come up with that number. This may be more than the specified number of periods if your definition ignores zero periods, final periods, or other periods.

The following information is printed for each period:

  • Start Date, End Date: The start and end dates of the earnings period.

  • Last Process Date: The end of the period for all complete periods.

  • Projected Y/N: P means that the earnings were projected.

  • Actual Earnings: Shows the earnings from payroll.

  • Generated Earnings: Shows the earnings for the period if your plan rules caused the system generate earnings.

  • Adjusted Earnings: Shows the final earnings amount after all generations and adjustments. This is the amount actually used in the averaging process.

  • Portion of Earnings Used: This is 0 when the earnings are not included in the average and 1 when the earnings are included.

The Vesting section shows the vesting percentage as of the event date.

The Age Adjustment Factors section shows any early or late retirement adjustments. This includes plan early and late retirement factors, and may include actuarial adjustments that are applied to 415 limits for early or late benefit commencement.

For each factor, the report prints the description and the factor.

The Death Adjustment Factors section shows the reduction factor applied to a participant's benefit when the plan requires the participant to pay for coverage under the plan's preretirement survivor annuity offering. The report shows the final factor and the length of the coverage period.

The Covered Compensation section shows the participant's covered compensation: the average of the taxable wage bases for the 35 years up to and including the participant's social security normal retirement age. The amount is either a monthly or annual figure, depending on how you express covered compensation for your plan.

The Social Security section provides the participant's social security retirement age, the estimated social security benefit at that age, the assumed social security commencement date, and the estimated social security benefit at that date.

Note:

Detailed information about how the social security amounts were calculated is available in a separate report, PAT06C - Social Security Worksheet.

The Account Balances section prints information on cash balance accounts. It includes the final account balance as of the event date.

Note:

This balance is labeled Accumulated as of Benefit Commencement Date, but it is actually as of the event date.

The report prints the following information for each period:

  • Start Date, End Date: The start and stop date of the period.

  • Beginning Balance: The beginning account balance for the period.

  • Earnings: Earnings for the period.

  • Credit for Period.

  • Contribution Rate: The percentage of earnings credited to the account.

  • Interest for Period.

  • Interest Rate.

  • Adjustment for Period.

  • Interest for Period: Interest adjustments for the period

  • Ending Balance.

The Employee Accounts section prints the final account balance as of the benefit commencement date.

The report prints the following information for each period:

  • The start and stop date of the period.

  • The interest earned on the prior period balance.

  • The pretax credits (deductions) for period, the interest earned on the prior pretax credit balance, and the new totals for pretax credits and pretax interest after the current period amounts are added to the balance.

  • The posttax credits (deductions) for period, the interest earned on the prior posttax credit balance, and the new totals for posttax credits and posttax interest after the current period amounts are added to the balance.

  • Contribution rate, which is the percentage of earnings contributed.

  • Interest for the period.

  • Interest rate.

  • Adjustments and interest adjustments for the period.

  • Ending balance.

The Plan Eligibility section shows whether the participant was eligible as of the event date and provides a history of the participant's eligible and ineligible periods.

The Plan Participation section shows whether the participant is participating and, if so, when the participant became a plan participant.

The Benefit Eligibility section shows each retirement type that is defined in the system and whether the participant is eligible or ineligible for that retirement type.

The middle column prints the system's internal name for the retirement type.

The Limit 415 section prints information about how the system determined the Section 415 limits and applied the limits to the participant's benefit.

There are two components to the 415 limit:

  • FAE Limit/Adjusted: The final average earnings (FAE) limit. This amount can be adjusted for early or late benefit commencement.

  • Maximum 415(b) Limit/Adjusted: A dollar limit published by the IRS and known as the "maximum 415(b) dollar limit." This amount can also be adjusted for early or late benefit commencement.

The lesser of the above amounts is used as the final limit.

Historically, there was a third limit, which has been repealed. However, it still a limiting factor for calculations with certain historical benefit commencement dates. This combined fractional limit restricts the total amount a participant can receive from both defined benefit and defined contribution plans. The historical rule is that the sum of the "defined contribution fraction" (DC fraction) and the "defined benefit fraction" (DB fraction) cannot exceed 1. If the sum is greater than 1 and the DC plan is primary, the defined benefit is reduced until the sum equals one. These fractions are calculated according to rules that were laid out by the Internal Revenue Code.

Because this limit applies to certain historical calculations, the following fields are printed:

  • 415(e) Limit: The historical limit on the total amount a participant can receive from defined benefit and defined contribution plans.

  • DC Fraction: The defined contribution fraction used to calculate the historical limit.

  • DB Fraction: The defined benefit fraction used to calculate the historical limit.

The following fields are also printed:

  • Total SLA Benefit: The participant's total single life annuity (SLA) benefit from all plans included in this calculation.

  • Limit Used: The limit that was used (the lesser of the applicable limits).

  • Reduction: The amount of the reduction.

The report prints the following information for the benefits that are subject to 415 limits:

  • Order.

  • Benefit Plan.

  • Function result.

  • Pmt amtl: The unlimited payment amount.

  • L415 Pmt amtl: The limited payment amount.

  • For 415 Only: If this is Y, the plan does not offer a single life annuity, and the annuity value shown is used only in the 415 limit calculation.

  • User Reduction: The reduction amount.

  • Proration Pct: The reduction factor.

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