ProVal PS is a separate PC application that allows interactive modeling. It allows you to run deterministic and stochastic forecasts in real time, and allows changes to the benefits policy, the investment policy, the contribution policy and more. The results are displayed with boardroom-level graphics. ProVal PS inherits its data from forecasts that have previously been run in ProVal. The Populate ProVal PS command gathers these forecasts and creates a .pvps file that can be opened in ProVal PS. This same file can also serve as a liability warehouse and calculator for third party risk tools.

Types allows you to specify whether deterministic and/or stochastic forecasts will be used to populate the ProVal PS file. This controls the functionality that will be available in ProVal PS.

ProVal PS can perform modeling for a single plan or multiple plans. For example, if a sponsor has one salaried plan, two hourly plans and two OPEB plans, these can be all be populated within a single ProVal PS file. The Plans button allows you to indicate which plans to include in the ProVal PS file. The “New” button, located to the right of the Plans input, is used to create a new Plan and define its parameters through the use of Benefit Policies. Define a benefit policy by selecting the appropriate forecast from the drop-down menu and entering a label to describe the policy. When only the deterministic type is checked on the previous screen, deterministic forecasts are referenced in the benefit policies drop-down. Otherwise, stochastic forecasts are referenced and you must complete an additional input of the Deterministic Assumptions when both types are checked. For illustration, in order to model the current plan design alongside a plan design that freezes benefit accruals in a future year, two benefit policies will be used – labeled “current” for the current benefit policy and “frozen” for the alternate benefit policy. If there are multiple plans, such as an hourly and a salaried plan, then there will be two separate Plans defined, each with "current" and "frozen" benefit policies.

Efficient Frontier is an optional input that is available when the stochastic type is checked. This will display an efficient frontier on the "Investments" tab of ProVal PS. For more detail on creating an efficient frontier, see Efficient Frontier.

Alternative Capital Market Simulation is an optional input that is available when the stochastic type is checked. This will allow you to select from multiple capital market simulations in ProVal PS. For more detail on creating a capital market simulation, see Capital Market Simulation.

File is the directory and file name where the ProVal PS file will be saved. The file extension .pvps will be added to the file name automatically.

For more information on ProVal PS, view the online brochure or contact WinTech's sales team at +1 (203) 861-5514 or sales@winklevoss.com.