Projection
The Projection tab controls changes in the account balance after termination. The default is that interest continues to accrue until benefit commencement. Alternatively, the account balance may automatically include interest projected to a fixed date. This latter choice is appropriate, for example, for conversions from a lump sum to an annuity based on an annuity that commences at Normal Retirement Date.
Post-decrement benefit increases with interest until commencement at known (or projected) crediting rates and then (for final calculations): is appropriate when the account balance is not projected, but simply increases with interest from the decrement date until commencement. For estimates, interest will continue based on the pre-decrement crediting rate approach (that is, the crediting rate determined by the parameterization of the Structure tab as modified by any applicable Adjustments or Active Rate Change), reflecting the projection assumptions for any referenced interest rate tables. For final calculations, there are two choices for how the account balance grows when an interest rate table is used for the basic crediting, but empirical rates through the commencement date are not yet known: either using a rate that is equal to the Last known applicable rate or based on a specified Constant entered as a decimal (e.g., 0.08 for 8.0%).
Alternatively, Benefit at decrement includes projected interest until: is appropriate when the balance should always include projected interest to a fixed (typically, future) date. Note that interest is still credited after the fixed date (at the projection rate) if benefit commencement occurs after that date. The fixed date to which interest is credited is determined by:
Attainment of Eligibility Definition: selects an Eligibility Definition which defines the conditions that trigger the change in crediting rate.
Based on Service Definition Set: selects the Service Definition Set which defines how to evaluate any service or points criteria in the selected Eligibility Definition. If <Base Service Set> is selected, the Service Definition Set specified in the Census Specifications is used.
Based on projected crediting rate defines the interest rate to be used from the decrement date through the date determined by the eligibility criteria and beyond:
Constant credits interest based on the specified rate. Enter the constant rate as a decimal (e.g. 0.08 for 8.0%).
Constant from database field credits interest based on a constant rate from a numeric field within the data. The numeric field may be either scalar or an array. If the field is an array field, the interest rate will change in accordance with changes in the field, based on the rate in effect at the beginning of the crediting period. However, the first rate specified will be used for all crediting dates prior to the effective date of that rate.
Based on Interest Rate Table credits interest based on the interest rate as of each crediting period according to the selected Interest Rate Table. Only flat rate (not spot rate, duration or PBGC) type tables may be selected. If the interest rate varies during the crediting period, the rate at the beginning of the period is used. If different tables apply to different groups of records who can be identified by the values of a coded database field (e.g., Division), then you can specify <rates by coded database field>. Click the Parameters button to specify the coded field and select the Interest Rate Table to be used for each code. If the coded field is an array field, only the most recent value will be used to determine the applicable table.