Decrementing Actives

In German mode, this topic is entitled 'Decrementing Actives & Terminated Vesteds'.

Choose whether expected benefit payments for new vested records are zero or determined using benefit definitions. If "zero" is selected, the expected benefit payments will be adjusted to zero for any record which was active at the beginning of period and vested at the end of period. If "determined using benefit definitions" is chosen, the expected benefit payments will be calculated in the same manner as all other records, using the status at the end of period and the associated benefit definitions. These options are not available if you have selected that actual benefit payments are equal to Expected benefit payments, using valuation assumptions (on the Benefit Payments, Assets, & Expenses screen).

Check the Analyze benefit received by decrementing actives box to analyze the difference between the assumed benefit received by decrementing actives (and, in German mode, decrementing terminated vesteds) and the actual benefit received. Select each benefit to specify which new inactive records (who were eligible for the benefit and decremented due to that benefit's contingency) actually received the benefit. You may select from the following two options:

For most benefits, select new inactives with coded field & code. Then specify a coded field and code on the end of period database that indicates receipt of the selected benefit.

Examples:

Pension - measuring the gain/loss associated with an optional form. If your end of period inactive data already contains a coded field with the form of payment received, reference it here and select the code that indicates receipt of the form.

OPEB - measuring the probability the member elected coverage. Select a coded field that indicates whether coverage for the benefit was elected. You may have coded field named "Coverage" where the values "single" or "family" both indicate that the benefit was received. In this case, you should select both of those codes here.

If the selected coded field does not exist in an end of year database, this indicates that no participants in that database received the benefit.

Alternatively, you may select new inactives that were cashed out, as determined by the Non-Participating Statuses parameters.

This is useful for immediate lump sum benefits, when the new inactive participants are not on the end of year database and therefore can't be identified by a coded field.