Soc. Sec. NAW and CPI
The NAW and CPI increase rates apply from the law year through termination. From termination to commencement, 0% increase (i.e., level projection) is assumed. The national average wage increase rate assumption (NAW) also applies to the social security wage base.
The three choices for the parameter defining NAW and CPI increase rates are:
A constant rate will be applied for all calendar years starting with the law year. Enter the constant rate of annual increase as a number between zero and 1 (not as a percentage).
The variable (from library) option accesses Increase Rate Tables that have been entered under the Reference Tables command of the Input menu. Select from the list of all increase rate reference tables in the current Project. Alternatively, you may specify the varying annual rates directly in this dialog box.
The variable by year option allows you to enter rates of annual increase that vary by calendar year directly in the dialog box, instead of by reference to a table. Complete a row for each increase rate. For example, if the law year is 2000 and the increase rate assumed is 5% for calendar years through 2001 and 6% thereafter, then enter
| From | To | Rate |
| - | 2001 | 0.05 |
| 2002 | - | 0.06 |
ProVal fills in the To column automatically, and the last rate will be used for the last year entered and all years thereafter. Note that the first row of the From column cannot be completed.
See also Increase Rates.