To add a bonus, you must specify bonus percentages, entered as fractions of the base salary (for example 0.20 to add a 20% bonus) in the form of either a Table, to specify bonus percentages which can vary by age and/or service; or as a numeric Database field, to specify bonus percentages which can vary for each active participant. When specified by table, the Parameters button provides access to additional parameters that are sometimes needed. When the <varies by coded database field> option is selected, this button is used to specify a different bonus percentage table for each code. This button also provides access to parameters that define table service for lookups if the bonus percentage table is service-based.

The Current year bonus parameter allows you to specify a numeric database field with a one-time current year override to the bonus that would otherwise be derived from the bonus percentage. For future years, the bonus calculation will revert back to the bonus percentage derived from the field or table.  Use the “<apply bonus percentage>” option to apply the bonus percentage assumption in all years, without any special one-time override for the current year. This parameter is not available when the “<impute from prior salary>” option is selected for current salary.

When the Use historical salaries checkbox is unchecked on the main salary definition screen, bonus percentages are automatically applied to determine historical bonuses and all the historical bonus options are hidden. When the Use historical salaries checkbox is checked on the main salary definition screen, there are three options for specifying Historical bonuses.

• “Included in historical salary” indicates that no additional bonus should be added to the historical salaries specified on the main salary definition screen. This option is not available if the “<impute from prior salary>” option is selected for Current salary on the main salary definition screen.
• “Apply bonus percentage”  derives historical bonuses by applying the bonus percentage to the historical salaries. 
•  “Use historical data” allows you to specify a Historical Bonus Field for each year prior to the current year. Row “1” refers to the most recent prior year. Do not enter the current year bonus (for the year beginning on the valuation date) in this box, as this should be specified using the Current year bonus parameter. Please note that the number of years for which historical bonus database fields are specified must be the same as the number of years of historical salaries specified on the main salary definition screen.

The Replacement option for missing historical bonuses allows you to specify whether ProVal will replace missing values (blanks) in the historical bonus field with zeros or, alternatively, with bonuses calculated using the bonus percentage assumption. 

When Exclude partial years is not specified as the Salary in year of hire option on the main salary definition screen, the Bonus in year of hire parameter allows you to specify whether to adjust the bonus in the year of hire from the database field. Please see the Salary Definitions screen for more information on each option. 

When Exclude partial years is specified as the Salary in year of hire option on the main salary definition screen, the bonus in year of hire will also exclude partial years and all the Bonus in year of hire parameters are hidden. Historical bonuses in partial years of hire will be replaced using the bonus assumption. 

The Bonus limit parameter allows you to apply a limit to the bonus (or <none> if no limit applies). You may choose any Custom Regulatory Table that has been defined and unhidden in the current Project, or choose <varies by coded database field> to specify a different bonus limit for each code.

​