Service Definitions let you handle plans with fractional service accruals (e.g., hours-related service) and rounding rules (e.g., completed years, completed months, etc.). Service Definitions can be used virtually anywhere ProVal asks for service: benefit eligibility, accrual rates of an accrual definition Benefit Formula Component, full eligibility (OPEB), etc.

Using a Service Definition is optional. Service also can be specified by referencing a database field in all the places mentioned in the preceding paragraph. This is equivalent to a Service Definition with (a) current service defined by that field, (b) service accruals of 1 per year and (c) no rounding.

Name may be any descriptive phrase, including spaces, under which to save this Service Definition.

Current service (or service date) is specified using a database field that is either numeric or a date field. A numeric field is assumed to contain the total service earned as of the valuation date (a.k.a. current service). A date field’s value is subtracted from the valuation date to determine current service based on elapsed time. The value of the Service accruals parameter (discussed in the following paragraph) does not affect the computation of current service. Thus, if past service accruals have not been 1 per year and you reference a date field, the service date value in that field should be equal to the valuation date minus current service.

The Service accruals (forward and backward from current service) parameter defines, as a fraction of a year, how much service accrues each year. Past service, as needed to determine accrued benefits (e.g., for a career average benefit formula component) or benefits at decrement dates prior to the valuation date for calculations under the entry age normal cost method, is projected backward from current service using this same service accrual. In its calculations, ProVal will use an original service start date equal to the date obtained by subtracting current service from the valuation date and dividing the result by service accruals. Exception: when service accruals are 0 (e.g., because service is frozen), past service is projected backward at the rate of 1 per year. Note: a service accrual of less than 0.001 per year is deemed to be 0.

Service accruals may be specified as a Constant value that applies to all active participants or as the contents of a numeric database Field, with or without “transformation”. If a Field is specified, it may contain service amounts or, alternatively, source data that you wish to transform to service amounts.  This transformation is accomplished by checking the Transform data (e.g., hours) to service box and entering the appropriate breakpoints for service accruals in the grid that becomes accessible. Select <Hours> as the Field to use the Hours Database Field selected in Census Specifications.  

Service Definitions thus are useful for coding eligibility service or benefit service credits that depend on hours worked in the year, for example:

For Current service, specify a numeric field that contains the accumulated service accrued during all past years. If you use a date field instead, be sure its value reflects an adjusted credited service date (e.g., adjusted hire date), because ProVal will just compute elapsed time (and thus not reflect breaks-in-service, partial rather than full accrual for part-timers, etc.).

For Service accruals, specify the field <Hours>, to reference the Hours entered in Census Specifications, typically containing the most recent year’s hours worked. If the database contains hours instead of a service accrual fraction, you could apply fractional accrual using Define Field by Expression or Census Data | Data Defaults. For example, the expression “(Hours / 1000) #min 1” prorates service for less than 1,000 hours. Alternately, check the box to Transform data (e.g., hours) to service and specify the appropriate breakpoints for service accruals, given a step transformation. For example, a prescribed schedule starting at 0.5 years of service for 320 hours and an additional 0.05 years of service for each 100 hours from 901 to 1801 could be entered as follows:

From	To	Service
0	320	0.00
320	901	0.50
901	1001	0.55
1001	1101	0.60
1101	1201	0.65
1201	1301	0.70
1301	1401	0.75
1401	1501	0.80
1501	1601	0.85
1601	1701	0.90
1701	1801	0.95
1801	--	1.00

Rounding is applied after determining current service and adding (or subtracting) the service accrual for each year in the future (or in the past).

Examples:

If you want service to be…	then select…
exact	Rounding = None
completed years	Rounding = Year, Direction = Down
count partial years as full years	Rounding = Year, Direction = Up
rounded to nearest year	Rounding = Year, Direction = Nearest
completed months	Rounding = Month, Direction = Down
count partial months as full months	Rounding = Month, Direction = Up
rounded to nearest month	Rounding = Month, Direction = Nearest

If you want to control the number of decimals when rounding months, then select “Custom Amount” and enter an Amount with the desired number of decimals; for 1/12th of a year, for example, enter 0.083, 0.0833, 0.08333, or 0.083333, etc..

Rounding is applied to the total service, not to each calendar period of service (e.g., each year, each month). For example, service in completed months from 1/15/2000 to 3/17/2000 is 0.166666667 (2 months), not 0.083333333 (1 month, February).

See also the Service Definitions and Attribution section of the technical reference article PUC and UC attribution.