This topic contains the parameters that tell ProVal which wage base table to use and when to end the averaging period for computing the average wage base. In addition, rounding options are available for the averaged wage base. The standard operator is based upon U.S. Social Security wage bases, an averaging period ending with the year of decrement and rounding according to the methodology used for U.S. Covered Compensation.

The Wage Base parameter allows you to specify the applicable wage base regulatory data as one of six internal regulatory tables (options and associated tables listed below) or as a custom regulatory table that was specified as a wage base type. To specify a custom table, either select from the list of tables unhidden in the current Project or click the button to edit a table or create a new one. The wage base will be projected in accordance with the option selected and the values entered as increase rates, under the Increase & Crediting Rates topic of Valuation Assumptions (and, in a forecast, under the corresponding topic of Projection Assumptions), for the applicable parameter (if you specify one of the internal tables) or for the custom table specified.

These are the internal regulatory tables (text files) associated with the Wage Base options:

Option	Regulatory Table
Social Security wage base	RegWageBase.txt
401(a)(17) maximum	RegMaxComp.txt
Canadian YMPE	RegCanYMPE.txt
German BBG limit	Derived value based on RegGerBBGW.txt and RegGerBBGWM.txt
German Healthcare BBG limit	RegGerBBGKV.txt
U.K. Lower Earnings Limit	RegUKLEL.txt

If the averaging period does not end in the year of decrement select the option that the Averaging period ends 1 year before decrement.  To specify more than one year between the end of the averaging period and the decrement date enter an integer between one and five years.

Rounding allows you to control rounding of the averaged wage base. (Note that this rounding occurs separately from, and subsequent to, any rounding specified for a custom regulatory table.) If you choose None, no rounding will be applied. If you choose to Apply U.S. Covered Compensation rounding, the rounding selected under the Plan Attributes topic of the Plan Definition will apply. If you choose to Apply rounding rule, you can indicate the desired degree of rounding, by specifying the Amount and the rounding Direction, which indicates whether values should be rounded up, down or to the nearest multiple of the rounding rule Amount. A value of 100 entered as the Amount, for example, indicates that values should be rounded to hundreds, whereas a value of 0.01 indicates that values should be rounded to hundredths and a value of 0.001 indicates that values should be rounded to thousandths. The rounding direction options are “Nearest”, “Up” or “Down”. If you enter an Amount of 1 and select the “Nearest” option for the Direction, then the average wage bases will be rounded to the nearest dollar. Similarly, if you enter 100 for the Amount and select “Up”, then those values will be rounded up to the next multiple of $100.