QUESTION#1: I'm valuing a return of contributions with interest, where contributions are 3.0% of each year’s salary. I have accumulated contributions with interest to the valuation date (7/1/2009) stored in the database field CONTRIBSWINT. Because I'm calculating entry age liabilities, I need to worry about accumulated contributions as of dates prior to the valuation date. How will ProVal accumulate contributions with interest to these dates?

There are two ways to value a refund of employee contributions: the "manual" approach where you code a Benefit Definition to value the refund; and the "automatic" approach where you tell ProVal to value the refund when coding your employee contribution.

Manual Approach: Typically, you create an accrual definition Benefit Formula Component, using the cash balance format, and make this component the entire benefit formula of your Benefit Definition for return of contributions.  Code the topics of the accrual definition as:

Accrual Basis	#SALARY
Accrual Rates	0.03
Accrued Benefit	CONTRIBSWINT.

Accumulated contributions on or after 7/1/2009 are based on the database amount and accumulation of 3% of future salaries according to the chosen format: sum of (basis times rates) with interest. For accumulation to dates before 7/1/2009, ProVal will estimate by prorating the Accrued Benefit (contents of the field CONTRIBSWINT) according to the accrual pattern indicated by the Accrual Rates screen (Benefit Service Field and Accrual Rates coding).

Note that you will need a separate Benefit Definition for each contingency (i.e, death, termination, disability) under which a refund of contributions is payable.

Automatic Approach: Check the box "Refund employee contributions when not eligible for any plan benefit" when defining the Contribution Definition for your employee contribution. You will also need to specify the field containing the accumulated value of contributions with interest as of the valuation date (e.g., CONTRIBSWINT). ProVal will evaluate the eligibilities defined for all death benefits, and, will value a refund of contributions in any year that a participant is not eligible for a death benefit. ProVal will automatically do the same thing with respect to disability and termination benefits. 

Accumulated contributions on or after 7/1/2009 are based on the database amount and accumulation of 3% of future salaries. 

For accumulation to dates before 7/1/2009, ProVal will estimate by prorating the value of contributions with interest as of the valuation date (e.g., CONTRIBSWINT) according to the accrual pattern defined by the Employee Contribution formula.

QUESTION#2: But I want accumulated contributions prior to the valuation date to be based on the employee contribution formula applied to historical salaries, ignoring the actual amount in CONTRIBSWINT. How do I code that?

ANSWER: This can only be handled using the manual approach described above (ProVal's automatic approach always prorates the accumulated value of contributions to get the historical values).  Create a Benefit Definition whose benefit formula is:

[HISTDTHBFT * (#LTCY 2009)] + [FUTDTHBFT * (#GECY 2009)].

Note the use of calendar year operators. #LTCY 2009 is 1 when the date is Less Than Calendar Year 2009, otherwise it is 0. #GECY 2009 is 1 when the date is Greater than or Equal to Calendar Year 2009, otherwise it is 0. Thus, HISTDTHBFT will apply to decrement dates prior to the current valuation date and FUTDTHBFT will apply to decrement dates on or after the current valuation date. (When you do the 7/1/2010 valuation, be sure to change the year used for the calendar year operators.)

FUTDTHBFT is just the Benefit Formula Component of Question#1. HISTDTHBFT is a Benefit Formula Component coded like FUTDTHBFT, except the Accrued Benefit is defined as "expected value". This tells ProVal to calculate, for decrement dates up to and including the valuation date, an accrued benefit based on the coding of the Accrual Rates and Accrual Basis.