U.S. Government Forms Extract
The U.S. Government Forms Extract command saves Valuation Set results to a file to be used to complete the Internal Revenue Service Form 5500 Schedule SB and Schedule MB and the PBGC Comprehensive Premium Filing form. These results can then be imported into either the Relius Government Forms 5500 software application or the FT Williams 5500 Forms software application. Of course, within these applications you must still enter any information not available from ProVal, such as the name of the plan sponsor, as well as values of items that ProVal does not export (such as the outstanding balance of a funding waiver base for a multiemployer plan, the amount of a waiver amortization installment for a single-employer plan under PPA funding rules and, also under PPA funding rules, whether there has been a change in method or in non-prescribed actuarial assumptions).
Note that the forms are only available for runs with a “PPA” or ”Multiemployer” law selection.
For official guidance, and to determine the appropriate ProVal parameter settings, refer to the instructions published by the IRS and the PBGC.
Exporting values from ProVal
Select (from the drop-down list of all Valuation Sets that have been executed and saved in the current Project) the Valuation Set that contains the output values you wish to export for use as entries on the government form(s).
If the Asset & Funding Policy law type referenced by the Valuation Set is “Multiemployer” and the Asset & Funding Policy Rounding parameter value is set to "<None>", ProVal will re-execute the Valuation Set with a Rounding parameter value of "$1". This avoids the situation where a value ProVal exported is a dollar off from the result produced by the form’s arithmetic (as indicated in the line item instructions). If the degree of rounding is set to $100, $1,000 or $1,000,000, however, ProVal will not re-execute based on $1 rounding, so you should create another Asset & Funding Policy, with $1 rounding selected, to produce another Valuation Set run for extract.
If the Asset & Funding Policy referenced by the Valuation Set has a law type of “PPA”, the $1 rounding policy mentioned above does not apply (in order to avoid a difference, because of rounding, in the amount of any discounted contribution computed under the Valuation Set Exhibits command). However, for this law type, the Asset & Funding Policy Rounding parameter value should not have been set to "<None>" anyway – because, in order to have certain ratios and percentages truncated if required by the Schedule SB instructions, $1 rounding should be selected.
Next select the Form for which you wish to export the pertinent Valuation Set results. The accessibility of the options depends on the Asset & Funding Policy law selection underlying the Valuation Set:
Select IRS Form 5500 Schedule SB to export values for completion of the Schedule SB for the current plan year of the selected Valuation Set. This option is available only for the “PPA” law selection. Be sure that all Valuations included in the Valuation Set (in the final Event, if any) have been run with calculation of vested liabilities selected under the Liability Methodology topic of the Valuation Assumptions.
Select IRS Form 5500 Schedule MB to export values for completion of the Schedule MB for the current plan year of the selected Valuation Set. This option is available only for the “Multiemployer” law selection. Be sure that all Valuations included in the Valuation Set (in the final Event, if any) have been run with calculation of vested liabilities selected under the Current Liability topic of the Valuation Assumptions.
Select PBGC Comprehensive Premium Filing to export values for completion of the Comprehensive Premium Filing form for the current plan year of the selected Valuation Set (presumed to be the premium payment year). ProVal will compute both the “per-participant” premium and, under “PPA” law, the variable rate premium. If your law selection is “PPA”, be sure that all Valuations included in the Valuation Set (including those in the final Event, if any) have been run with PBGC variable premium liability processing selected under the PBGC variable premium liability topic of the Valuation Assumptions. Also note that if your Valuation Set includes Events, ProVal exports values based upon the final Event. Thus, if plan provisions or actuarial assumptions have changed since the prior year, you may wish to run a Valuation reflecting the prior year’s plan provisions and assumptions and include it in the Valuation Set as an Override for PBGC purposes.
For completion of Schedules SB, or MB, you may need to modify the Contribution Schedule parameters of the Contribution Policy topic of the Asset & Funding Policy referenced by the Valuation Set. Although an earlier Valuation Set run, to derive the amount of the minimum required contribution, may not have reflected any actual contribution information, now you must provide it, including dates of payment. Therefore, you need to create another Asset & Funding Policy, to produce another Valuation Set run for extract. Under the Contribution Policy topic, check the Reflect contribution schedule box and (in the Contribution Schedule dialog box) enter all contributions made for the current plan year within the time period allowed for inclusion in the current plan year Schedule SB or MB and all relevant prior plan year contributions made during the current plan year. Enter the Schedule date. Note that:
If no employer contributions are required for the current plan year and none have been made, then no modification is needed and you may leave the Reflect contribution schedule box unchecked. ProVal will assume that no contributions were made for the plan year.
On the other hand, if contributions made within the time period allowed are insufficient to avoid a funding deficiency or an unpaid minimum required contribution for the plan year, the Schedule date must be the last day permitted for making current year contributions included in Schedule SB or MB. Otherwise, the Government Forms Extract command will not run.
Select which software application the results will be for import to. If Relius is selected, an XML file type will be created. If FT Williams is selected, a CSV file type will be created. Additionally, if FT Williams is selected, the EIN and Plan Number must be provided.
For the parameter XML file name or CSV file name (depending on the selection above), enter the name of the XML or CSV file (in the client directory) in which you wish to save results from the extract command. Instead of manually entering a file name, you may click the Browse button to select an existing directory (or folder) and/or XML or CSV file. If the file is not to be in the client directory, the full path and name is entered and displayed.
Click Run to execute the Valuation Set and save the pertinent results in the specified XML or CSV file. Various warnings and attachments may be issued, including (for Schedule SB or MB processing) a Schedule of Active Participant Data, a Schedule of Projection of Expected Benefit Payments, the development of the equivalent level annual rate of salary increase and the development of the weighted average interest rate, if needed.