Not applicable for Long Term Disability assumptions in OPEB mode.
Total salary growth is represented by two components that are geometrically combined: an inflation rate and a merit scale. That is, the total salary increase = [1 + salary inflation rate] * [1 + salary merit scale]. An inflation rate is entered as a constant rate (perhaps varying by calendar year); a merit scale is entered as a table (or as a collection of tables that vary by calendar year or according to the contents of a coded database field). If the salary increase assumption does not distinguish between salary inflation and a salary merit scale, then it may be coded entirely as either an inflation rate or as a merit scale. In particular, if the salary increase assumed is the same rate for males and females and at all ages and years of service (varying, if at all, only by calendar year), then you may enter this constant rate as a salary inflation rate. Similarly, if the salary increase assumed varies by age, service or sex, then you must code the salary increase assumption as a table (that you select as a salary merit scale). Because a Valuation applies both components of salary growth in the same manner, valuation results will be the same regardless of how salary growth is categorized. If a Core Projection will use this valuation as a baseline, however, you may wish to consider splitting the salary increase assumption into the two components, because a projection handles the inflation and merit components of salary growth differently. See Projection Assumptions for more information.
Salary inflation is the portion of salary growth correlated with prevailing economic inflation; it is entered either as a Constant Rate or as rates that vary by calendar year. Enter the salary inflation rate as a number between 0 and 1 (not as a percentage). If salaries in all future years are assumed to be the same as the current salary, or if a salary inflation rate does not apply (e.g., as for a plan with a benefit formula not related to salary), then enter zero for this parameter. For coding a salary increase assumption that is not separated into inflation and merit components, see the discussion of total salary growth in the preceding paragraph of this article. Selecting salary inflation rates that are Variable by calendar year will make available a grid in which to enter two or more rates. Complete a row for each salary inflation rate. For example, if the valuation date is 1/1/2009 and the inflation rate assumed is 3.5% for calendar years through 2011 and 4% thereafter, then enter
| From | To | Rate |
| -- | 2011 | 0.035 |
| 2012 | -- | 0.04 |
ProVal fills in the To column automatically, and the last rate will be used for the last year entered and all years thereafter. Note that the From box in the first row cannot be completed. Our example involved only two salary inflation rates: if you have several inflation rates in your assumptions, you may need to press the ENTER key, to create a new row, when you get to the bottom of the spreadsheet.
Indicate the Salary merit scale by selecting from the list of Salary Merit Scale Tables that have been saved and unhidden in the current Project or click the 
button to create a new table. The table may be sex distinct and may have age and service dimensions. An option is listed for specifying tables that are selected according to a coded database field if different tables should be used for different groups of records, identified by values of a coded database field (e.g., Division), and/or based upon calendar year (referring to the calendar year that a salary is associated with). An additional Salary merit scale may also be specified by clicking the 
button. If specified, the total increase in salary from year to year is determined by multiplying the prior year salary by (1+salary inflation) x (1+merit1) x (1+merit2).
The Parameters button becomes accessible if the salary merit scale varies by coded field/calendar year. Click this button to access additional parameters for these options. See Varying Salary Merit Scale for details.
If you wish to override this treatment for some Salary Definition included in your Census Specifications or your Plan Definition, click the Salary Increase Overrides button, to enter the Salary Assumption Overrides dialog box, which lists the Salary Definitions unhidden in the current Project. Click the name of a Salary Definition for which you would like to use different salary increase rates and indicate, in the next (Salary Increase Override) dialog box, the salary inflation rate(s) and salary merit scale that should be used instead of the salary increase rates of the “main” (Salary Increases) dialog box. You may specify a Salary inflation override and/or a Salary merit scale override for any of the Salary Definitions listed. The available parameter options are the same as in the "main" dialog box for the Salary Increases topic; see the previous discussion in this article of coding these parameters. After you enter "override" salary scale values, click OK and ProVal returns to the Salary Assumption Overrides dialog box, where an asterisk appears to the left of the name of any Salary Definition for which an override assumption has been specified. If you wish to remove (delete) an existing override of the "main" salary increase rate(s) for a particular Salary Definition, click the Erase button; after removing the override values, ProVal will return to the Salary Assumption Overrides dialog box.