entry age liability methods - pension modes except German and U.K.

Checking the Use alternative formula for EAN Normal Cost box (accessible except for a Benefit Definition exclusively for the "vested valued through active" status) of a Benefit Definition and clicking the Formula button leads to the Benefit Formula for EAN Normal Cost dialog box, which provides parameters to compute, under the entry age normal cost liability methods (level percent and level dollar variations), an active member’s normal cost, and present value of future normal costs (PVFNC), by applying a benefit formula that differs from the formula used to compute present value of future benefits (PVFB).

PVFB, however, is computed according to the expression entered under the Benefit formula of the Benefit Definition. For more information, see Liability Methods - Funding and the Technical Reference article on Entry Age Normal cost method.

The alternative Formula is constructed with Benefit Formula Components in the same manner as is done for the benefit formula used for PVFB.

Clicking the Component Library button leads to the Benefit Formula Component Library dialog box, by means of which you can create, unhide and edit Benefit Formula Components.