Expected benefit payments (EB) calculated in a Valuation or Core Projection represent the expected cash payments during the year. These values are used in a Valuation Set or Deterministic Forecast without adjustment and are assumed payable in the middle of the year.
Actives
For each active benefit, k, the expected benefit payments, 
, are a function of the probability of decrement, 
, the
that is payable upon decrement, inactive mortality 
for the year beginning on the valuation date, the number of payments per year, m (in OPEB mode, m = 1) and the payment form. Consider the following examples.
Life annuity 
Annuity certain 
Life insurance 
Lump sum 
Modified cash refund 
Under a middle of year decrement assumption, expected benefit payments use average benefits, a half-year’s benefit payments and a half-year’s mortality. That is, in the equations above, ProVal uses 
in place of 
and:
in the pension modes: 
in place of 
,
in OPEB mode: 
in place of
.
Inactives
Inactive expected benefit payments, 
, are a function of the 
in force, inactive mortality
for the year beginning on the valuation date, the number of payments per year, m (in OPEB mode, m = 1) and the payment form. Consider the following examples.
Life annuity 
Annuity certain 
Life insurance 
Lump sum 
Modified cash refund 
Historical notes:
-
In versions 2.08 through 2.15 of ProVal, pension mode EB represented a beginning-of-year present value for actives and cash payments (at mid-year) for inactives. Valuation sets and forecasts converted the active amounts to cash by multiplying by
(to reflect the mid-year timing of the cash payments), where 
is the applicable interest rate (funding rate, RPA or OBRA current liability rate, PBO discount rate or the rate of expected return on assets, depending on the calculation). The inactive amounts were already at mid-year and therefore used without adjustment. -
In versions 2.01 through 2.07, pension mode EB represented a beginning-of-year present value for both actives and inactives. Valuation sets and forecasts converted these amounts to cash by multiplying by
.