ProVal contains reference tables for the following categories of rates or probabilities:

• rates of decrement, from the causes death (aka mortality), disability, termination and retirement

• rates of salary growth, entered as salary merit scales

• rates of improvement, entered as mortality improvement scales, to apply to mortality rates

• election probabilities, or likelihood of receiving a benefit if a decrement occurs (i.e., an additional probability is applied at the time the decrement occurs)

• rates of increase in regulatory items under U.S. or Canadian statutes, in Benefit Formula Component or Accrual Basis Component values and, in OPEB mode, in lifetime or annual limit benefit limit values. Included among increase rates for Benefit Formula Components in the pension modes are interest crediting rates for cash balance pension plans. In OPEB mode, the trend of health care claims cost in a retiree medical plan is coded as an increase rate table.

• in the pension modes, rates of annual cost-of-living adjustments (COLAs)

• fractions of the population assumed married

• age difference between husband and wife

• in OPEB mode, lapse probabilities, the annual likelihood of a benefit lapsing after decrement

• yield curves assumed for valuation interest rates in Deterministic Forecasts.

The Reference Tables command also provides access to custom regulatory text files that are created and stored outside ProVal and contain “historical” data that can be used in place of the standard compensation limit historical data (RegMaxComp.txt) or the standard U.S. social security wage base history (RegWageBase.txt). These custom regulatory files are available in all ProVal modes of operation.

Decrement tables must be specified for Valuation Assumptions and, if you are running a Core Projection, for Projection Assumptions. The other table categories are optional.

Decrement tables, salary merit scales, election probability tables, fraction married tables and age difference tables are entered into ProVal spreadsheets whose interface permits values to vary by age, service, age and service (i.e., the table is select and ultimate), and sex. In pension modes other than German and U.K., retirement rate tables may also vary by replacement ratio. COLA rates are entered in the same manner, except the “service” dimension is labeled “duration”. Fraction married tables and age difference tables permit values to vary by age and sex. 

Increase rates are entered into a three column spreadsheet that varies by calendar year.

Yield curves are entered into a three column spreadsheet that varies by forecast valuation date.

Except for increase rate tables, yield curves and custom regulatory tables, see Table Interface for details about constructing and entering values. For such details about increase rate tables, see the discussion under the Increase Rate Tables command. Likewise, for details about constructing a yield curve library entry, see the discussion under the Forecast Yield Curves command.