This section of the Benefit Definition provides the formula for computing the amount of the benefit at each calculation date, including the decrement date(s) and all commencement dates.

Entering the formula expression in ProAdmin is simply a combination of filling in parameters and free-form programming. Each formula is simply a combination of building blocks called Benefit Formula Components. There is no limit to the number of components that you can create and use, and you may name them whatever you wish. These components are linked together by ProAdmin operators, which range from simple addition to doing specialized date arithmetic.

Here are some keys to creating benefit formula expressions:

• If you’re a new user, consult the Getting Started with ProAdmin guide.

• Use logical component names and complete descriptions. Clarity is as important as accuracy.

• Capture as much of the complexity of the plan as possible within the components, so that the formula itself is clean and easy to understand.

• Let accrual definitions do the work for you. For most pension plans, this type of Benefit Formula Component will automatically project service, salary, regulatory items and the like.  

• Be mindful of ProAdmin’s order of operations. ProAdmin evaluates expressions from left to right, with no precedence among the operators. For example, ProAdmin would calculate 1+2*3 to be 9, not 7. You may use parentheses, brackets, or braces within your expressions as required to control the order of operations.  (If ProAdmin senses the possibility for confusion, it will offer to add parentheses to clarify the formula.)

• To refer to an item from your database, create a component that is a database field or a database expression and then include the component in your formula. Alternatively, you may type the Data Dictionary name into your formula; ProAdmin will offer to create the component for you by reference to the Data Dictionary field of the same name.

• Push F1 when you need help. When your cursor is in the Benefit Formula dialog box, a useful list of components, codes and labels, operators, etc. is only a keystroke away.

Clicking the Component Library button leads to the Benefit Formula Component Library dialog box, through which you can create, unhide and edit benefit formula components.