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Salary

This topic contains the parameters that tell ProVal how to customize salary for each decrement year. The standard operator is based upon the <salary>, the Salary Definition defined in the Census Specifications and (for U.S. qualified pension and U.S. public sector pension modes only) salaries limited to the U.S. Internal Revenue Code section 401(a)(17) compensation limit.

Salary Definition defines the salary data to use. If Salary is selected, then (only) the Salary Definition included as part of the Census Specifications will be used. If you select the Alternative Salary (or sum of alternative salaries) option, then you may choose one or more Salary Definitions from the list of Salary Definitions unhidden in the current Project. To access the Salary Definition Library dialog box, in which you may edit an existing Salary Definition, click the button. For details, see Salary Definitions.

Salary limit indicates whether salaries for this operator will be limited to the:

Starting Point “zeroes out” salaries for years before a “start” date that is later than the hire date assumed by ProVal. Salaries will be zero as of any decrement date before this start date. When the starting point is based on age, service and/or points (i.e., age plus service), these criteria are applied in the same manner as for benefit eligibility requirements (and the same rules for computing age and service apply). When the starting point is based on year (perhaps in addition to the other criteria), enter the year of the first decrement date at which you wish a non-zero salary. For example, suppose the valuation date is 7/1/2001 and you enter 1995 as the start year. Then salaries for years beginning on decrement dates through 7/1/1994 are zero and the first non-zero salary is for the year beginning on 7/1/1995.

Freezing Point freezes the salary (in the future or in the past) as of the decrement date when the freeze conditions are first met. If the salary is frozen before a participant’s date of hire, then that participant’s salary will be zero at all decrement dates. When the freezing point is based on age, service and/or points (i.e., age plus service), these criteria are applied in the same manner as for benefit eligibility requirements (and the same rules for computing age and service apply). When the freezing point is based on year (perhaps in addition to the other criteria), enter the year of the decrement date at which you wish to freeze the salary. Salaries at any later date will be the same amount. For example, suppose the valuation date is 1/1/2001 and you enter 1997 as the freeze year. Then salaries for 1998 and later calendar years will be the same as the 1997 salary.

When the starting and freezing points are determined by service or points, the service based on parameter defines service for purposes of starting and freezing. Typically, this is specified as a database field that refers to either current service or a service start date. Select the desired field from among the numeric and date fields unhidden in the current project. Alternatively, if you need fractional service accruals (e.g., hours-related service) or rounding (e.g., completed years), select from the library of Service Definitions. The button accesses the library to create and modify Service Definitions.

If the starting and ending points depend instead upon age or year only, then the service based on parameter will not be used. Note: when this parameter is set as the “<date of hire>” field, then the date of hire defined for your active data will be used.