The Valuation Set Exhibits command allows you to create pre-designed funding and expense exhibits for a Valuation Set created under the Valuation Sets command of the Execute menu. If the specified Valuation Set references more than one “event” (e.g., a plan amendment, an assumption change), the exhibits can be displayed reflecting just the baseline Valuation and, successively, each event Valuation.

In order to generate the exhibits, you are asked to specify:

• The desired Valuation Set. Only executed Valuation Sets appear in the list.

• Whether or not you wish to Display by Valuation Events. If you check this box, the output values produced by the baseline Event will be reflected in the first column, values reflecting the occurrence of the first Event referenced by the Valuation Set will also be used for exhibit line entries in the second column, and so forth for second and later Events (if any).

• The degree of Rounding. If rounding differs from that used in the Valuation Set, then some results may differ between these exhibits and other ProVal output. When a new Valuation Set is selected, the rounding parameter is reset to be consistent with the rounding used for the Valuation Set. The rounding may subsequently be changed if desired.

• The desired exhibits.

The list of exhibits will include only those exhibits supported by your parameter settings. For instance, in the U.S. qualified mode, if the law selection for your Asset & Funding Policy is “Pre-PPA”, the PPA exhibit developing the funding target will not be available.

You can select as many exhibits as you wish and then click the View button to see the results. ProVal then will rerun the Valuation Set in order to get all of the necessary detail for the exhibits.

 

Report Writing

If you are satisfied with the exhibits, you can then Print them or save them to a File, by clicking the appropriate button. The options for saving to a file are:

• Save the exhibits – and associated summary results – to a Microsoft Access database (*.mdb, *.accdb) for use with ProVal’s Report Writer. See Report Writer for more information. (For details about how the data is stored in Access, i.e., the schema, see Saving Results to Access).

• Save the exhibits directly to a valuation report written in Microsoft Word (*.doc, *.docx). See Saving Exhibits to Word for more information.

• As you can do with all ProVal output, save the exhibits to Microsoft Excel (*.xls, *.xlsx), a comma delimited file (*.csv) or a text file (*.txt) for further analysis.

 

Census Exhibit(s)

The following exhibits of plan participant data (i.e., the Census) are available:

Active Participant Data	An age-based, service-based table that provides head counts broken down into “buckets” of age and service. Average salary and, in the U.S. qualified pension mode, average cash balance account values are included in the buckets in accordance with your parameter settings under the Active Data topic of the Census Specifications. In the U.S. qualified mode, you may optionally display average accrued benefit amounts instead of average salaries (selection made in the Census Specifications).
Inactive Benefits Inforce	Available in the pension modes, an age-based table that provides head counts and the average annual benefit amount broken down, by age “buckets”, into three categories: annuities, insurance and lump sums. The breakdown is provided separately for vested plan members and for all other inactive members.
IRS - Schedule of Active Participant Data	Available in the U. S. qualified mode, this is a variant of the Schedule of Active Participant Data with “0” displayed for salary and cash balance account values in buckets representing low head counts, as determined in accordance with IRS instructions for completing Schedules B, MB and SB.

 

Employer Contributions Exhibit (U.S. qualified mode)

Select this exhibit to see how ProVal has applied cash contributions and credit balances entered in a contribution schedule under the Contribution Policy topic of the Asset & Funding Policy command. There are up to four sections detailing the application of cash and credit balances to each required quarterly contribution and to any remaining payment needed:

• The “Credit balance” section shows how the initial credit balance, and any prior year contributions that create a credit balance, satisfy quarterly contributions and any remaining payment needed (in excess of the quarterly payments) to satisfy the minimum required contribution. Under the “PPA” law selection, this section will appear only if parameter inputs indicate that a credit balance is maintained, the plan is eligible to apply the credit balance to the Minimum Required Contribution (MRC) and you wish to apply at least part of the credit balance to the MRC or to a quarterly contribution or remaining payment. Regardless of the law type selected, the first column displays the date that the amount of credit balance shown in that row is available for use, which is impacted by the date of a prior plan year payment and, under the “PPA” law selection, whether you are allowing quarterly contributions and/or a remaining payment to be satisfied by application of a credit balance (see the discussion, under the Contribution Policy topic, of the “If required, how will current year Minimum Required Contribution be paid?” parameter settings). The second column displays the amount of credit balance available at the date in the first column. Under the “PPA” law selection, it is possible for this amount to be “$0”, if a credit balance amount to be applied to a contribution requirement at that date was actually available at an earlier date (and thus is shown in a preceding row of this section) – see also the discussion below of discounting with interest under the “PPA” law type. Also note that, under the “PPA” law type, if a credit balance amount has been waived (to avoid benefit restrictions and/or at-risk status), then the credit balance amount shown in the second column will already be reduced to reflect the waived amount.

• The “Actual contributions” section displays the actual current year cash contributions entered in the Contribution Schedule and how they satisfy the quarterly requirements and the remaining payment.

• The “Expected quarterly contributions” section shows cash contributions that ProVal determines are required to satisfy the quarterly requirements in excess of contributions already entered in the schedule. This section appears only if the actual contributions shown in the schedule, taken together with credit balances used to satisfy required quarterly contributions, are insufficient.

• Lastly, the “Final contribution” section shows the remaining payment that ProVal determines is needed to satisfy the minimum required contribution. A final contribution amount of “$0” will appear if no contribution is required other than the actual contribution and expected quarterly contribution amounts.

Under the "PPA" law selection, this exhibit shows credit balances applied and cash contributions discounted to the beginning of the current plan year, both at the effective interest rate (in the column labeled “at EFF i”) and at the effective interest rate with late interest applied (in the column labeled “w/ LI”). The value of the credit balance applied is always shown as of the beginning of the plan year. The beginning-of-year discounted (cash) contribution values are displayed in two ways:

• For the column “at Eff i”, the contribution is discounted from the date it is paid to the beginning of the plan year at the effective interest rate;

• For the column “w/ LI”, the contribution, if paid late, is first discounted from the date it is paid to the date it was due at the effective interest rate plus 5%. Next the contribution is discounted from the date it was due to the beginning of the plan year at just the effective interest rate. Contributions paid earlier than the due date, of course, are discounted from the date paid to the beginning of the year at just the effective interest rate. The beginning-of-year values in the “at Eff i” and “w/ LI” columns will be the same for any quarterly contribution paid on or before its due date.

The difference between the values in these two columns is displayed in the column (on the far right of the exhibit) labeled “Late Interest (LI).” This column is provided to make it clear which payments satisfy required quarterly contributions but are paid after the quarterly due date. If a payment satisfies more than one quarterly contribution and more than one of these quarterly contributions is late, the discounted value in the “w /LI” column will include only the late interest applicable to the first late quarterly contribution the payment satisfies. Additional lines will show a negative amount equal to the late interest on the subsequent late quarterly contributions that are (also) satisfied by this payment. Adding up all of the lines applicable to this payment will give you its discounted value, reflecting late interest, as of the beginning of the plan year. Additionally, if a credit balance is used to satisfy one or more late quarterly contributions, the total amount of the late interest on those quarterly contributions will be displayed, in the “w/ LI” column, as a negative number in a row (near the bottom of the exhibit) labeled “CB late interest”.

Under the “PPA” law selection, credit balance amounts in the three “Contribution applied” columns – labeled “Required”, “Available” and “Applied” – are as of the following dates:

• if applied against a quarterly contribution, the quarterly contribution’s due date;

• if applied to the remaining payment, the date of the final contribution (as displayed in the first column, labeled “Date funds avail.”).

The amount shown in the “Required” column for a credit balance applied to the remaining payment is computed as the beginning-of-year preliminary MRC (i.e., before application of any credit balance) minus the beginning-of-year value of any required quarterly contributions, accumulated with interest to the date shown in the first column of the exhibit (labeled “Date funds avail.”).

 

Employer Contribution Exhibit

Note regarding the U.S. qualified mode: ProVal displays a minimum contribution per statutory constraints that reflects the total cash contribution for the current plan year, with no interest adjustment because contribution timing is not taken into account (that is, the actual payment dates and the payment due dates are disregarded – ProVal simply adds the contribution amounts up). Thus ProVal reflects any actual current year cash contributions entered in the contribution schedule (made through the Schedule Date). If the actual cash contributions entered are insufficient to meet the plan year’s minimum funding requirement (MRC), to the extent the additional amount needed will not come from application of a credit balance (if one exists), ProVal presumes, for exhibit purposes, that there will be more cash contributions, made after the Schedule Date, to meet the MRC and includes these presumed additional amounts in the statutory minimum contribution displayed.  This is a consequence of ProVal’s assumption of a “statutory minimum” contribution policy when a Contribution Schedule is reflected.  (The contribution schedule and employer contribution policy are entered under the Contribution Policy topic of the Asset & Funding Policy.) 

 

Multiemployer plan amortization relief in U.S. qualified mode exhibits

For both the prospective calculation and the retrospective calculation, amortization details are displayed in the Development of Minimum Basis Amortization exhibit. For the retrospective calculation, the Development of 431(b)(8)(A) Amortization exhibit displays the calculation of the Eligible Net Investment Loss (ENIL).