For any Deterministic Forecast created under the Execute | Deterministic Forecast command, the Deterministic Forecast Exhibits command allows you to create pre-designed funding and expense exhibits for any or all years in the forecast.

In order to generate the exhibits, you are asked to specify:

• The desired Deterministic Forecast. Only executed Deterministic Forecasts appear in the list.

• The degree of rounding. If rounding differs from that used in the Deterministic Forecast, then some results may differ between these exhibits and other ProVal output. When a new Deterministic Forecast is selected, the rounding parameter is reset to be consistent with the rounding used for the Deterministic Forecast. The rounding may subsequently be changed if desired.

• The number of forecast years for which to display results.

• The desired exhibits.

The list of exhibits will include only those exhibits supported by your parameter settings. For instance, in the U.S. qualified mode, if the law selection for your Asset & Funding Policy is “Pre-PPA”, the PPA exhibit developing the funding target will not be available.

Note for accounting exhibits:  the year in the column headings is the year of the first day of the plan year, not the year of the first day of the measurement year, if not coincident with the plan year. 

You can select as many exhibits as you wish and then click the View button to see the results. ProVal then will rerun the Deterministic Forecast in order to get all of the necessary detail for the exhibits.

 

Report Writing

If you are satisfied with the exhibits, you can Print them or send them to a File by clicking the appropriate button. In addition to saving to Excel and text files (as you can with all ProVal output), you can also:

• Save exhibits directly to a valuation report written in Microsoft Word. See Saving Exhibits to Word for more information.

• Save exhibits and associated summary results to an Access database for use with a report writer. See Saving Results to Access for more information.

 

Treatment of receivable contributions in exhibits developing asset values

If the asset valuation method projects market, or market-related assets (accounting), to the end of the year and there is a receivable contribution (for the prior year, paid after the first day of the current year) as of the beginning of the current year, ProVal displays the “Contributions receivable” cash flow items line in the “Projected expected market assets” section, or “Projected expected market-related assets” section (accounting), of the exhibit as follows:

• For the Development of Market-Related Assets Exhibit (accounting), the receivable contribution amount (that is, the sum of the amounts that will be paid in the current year for the prior year) is shown, because it is excluded from the amount on the initial asset value line.

• For the exhibits detailing the development of actuarial assets, and solvency assets (Canadian registered mode), generally a receivable amount of $0 is shown, because the receivable contribution amount is included in the amount on the initial asset value line. However, for plan years reflecting U.S. PPA funding rules, if a full year of interest is not given on discounted contributions receivable (as indicated by the expected assets parameter setting under the ERISA Asset Valuation Method topic), only the beginning-of-year discounted value of the contributions receivable is included in the amount on the initial asset value line, and thus the amount shown on the “Contributions receivable” line is the difference between the receivable contributions amount and its beginning-of-year discounted value.

For the exhibits detailing the development of actuarial assets, and solvency assets (Canadian registered mode), whether the “Contributions receivable” line of return items (or yield items, for the funding asset valuation method that blends book and market values) shows the return on the receivable contribution amount depends on whether this receivable contribution amount, or its discounted value under U.S. PPA law, is credited with interest from the beginning of the current plan year or only from a later date on which the contribution is made, which date is determined according to the timing parameter setting (found under the Contribution Policy topic of the Asset & Funding Policy referenced by this forecast):

• If interest is credited from the beginning of the plan year, then the interest credit amount, or return, is included on the “Initial assets” line of return items and an amount of $0 is shown on the “Contributions receivable” line of return items. This is ProVal’s treatment if the box is checked, for a funding asset valuation method, to give a full year of interest on receivable contributions, or on discounted receivable contributions under U.S. PPA law.

• If interest is credited from a later (contribution payment) date, then the interest credit amount, or return, is shown on the “Contributions receivable” line of return items. This is ProVal’s treatment if the box is not checked, for a funding asset valuation method, to give a full year of interest on receivable contributions, or on discounted receivable contributions under U.S. PPA law.

Note that the payment date ProVal derives for a receivable contribution will not be later than the beginning of the current plan year if the timing parameter is a fraction not exceeding 1 and not overridden, in the U.S. qualified mode, by reflecting a contribution schedule (entered under the Contribution Policy topic of the Asset & Funding Policy referenced by this forecast) ; thus, under this timing, interest will be credited for a full year regardless of whether the box is checked to give a full year of interest on receivable contributions. In this case, the receivable contribution is included in the initial asset value, and therefore the interest credited to it is included on the “Initial assets” line of return items.

 

Display of plan year cash contributions in Development of Employer Contribution Exhibit

In the U.S. qualified mode, if the law selection is “PPA” and the timing parameter setting (found under the Contribution Policy topic of the Asset & Funding Policy referenced by this forecast) is to pay quarterly contributions and the final contribution (if any is needed) when they are due, then ProVal includes a “Schedule of plan year cash contributions” section in the Development of Employer Contribution Exhibit. The anticipated employer cash contributions for each forecast year are shown, on a quarterly contribution or remaining payment line as appropriate (as discussed below for the initial, or baseline, year of the forecast), with an interest adjustment that reflects contribution timing  This adjustment also reflects the assumed contribution amount, as determined by the setting(s) of the Pay quarterly based on 100% of prior year MRC parameter of the Forecast Analysis topic of the Asset & Funding Policy.  

For the baseline year of the forecast, however, the employer cash contributions that ProVal shows reflect any actual current year cash contributions entered in the Contribution Schedule (made through the Schedule Date). If the actual cash contributions entered for the baseline year are insufficient to meet the plan year’s minimum funding requirement (MRC), to the extent the additional amount needed will not come from application of a credit balance (if one exists), ProVal presumes, for exhibit purposes, that there will be more cash contributions, made after the Schedule Date, to meet the MRC. This is a consequence of ProVal’s assumption of a “statutory minimum” Contribution Policy when a Contribution Schedule is reflected. ProVal displays these presumed cash contributions on a quarterly contribution or remaining payment line as follows:

• If the plan is not subject to the quarterly contribution requirement for the baseline year, then the presumed contribution amount is a final contribution and thus will appear on the remaining payment line.

• If the plan is subject to the quarterly contribution requirement for the baseline year, then the presumed contribution amounts, adjusted for interest as applicable, will appear on the appropriate quarterly contribution line(s), as well as on the remaining payment line if a final contribution is needed to meet the MRC. Thus, regardless of whether there are no cash contributions entered in the Contribution Schedule or the cash contributions entered “cover” some or all of the four required quarterly payments, ProVal displays the cash payment towards the four required quarterly amounts and the final contribution needed, if any, to meet the MRC.

 

Multiemployer plan amortization relief in U.S. qualified mode exhibits

For both the prospective calculation and the retrospective calculation, amortization information for election years is displayed in the Development of Minimum Basis Amortization exhibit. For the retrospective calculation, the Development of Hypothetical Actuarial Assets exhibit is available if the Development of Actuarial Assets exhibit is selected.