Pension Administration: Selected Reports (2024)

The Trustee Extractfile includes the payment-related data that a third-party requiresin order to produce pension checks.

The system creates theTrustee Extract file when you run the Retiree Payment COBOL SQL process(PAPPPYMT) in Confirmation Processing mode. It writes the trusteeextract data to the file that you define using the system variableTRSPYMT.

You can also createthe Trustee Extract file outside of the Retiree Payment process. Youonly do this in unusual circ*mstances—for example, if you lose ordamage the original file that is created by the Retiree Payment process.

There are two reportsthat print information about the contents of the Trustee Extract file:

• PAT08 - Trustee ExtractDetailed Report

• PAT09 - Trustee ExtractSummary Report – Record Type

This SQR may be runto view the payment results at an employee level. There are threechoices to run the report (the user can choose the desired outputon the run control page):

• Payment Details - Total.

• Payment Details - NonTaxable.

• Payment Information.

The Actuarial ValuationExtract provides data that your actuary needs in order to performa plan's annual actuarial valuation. The extract consists of two files:

• Active extract file (pawav01.ext)for participants who are still accruing benefits.

• Inactive extract file (pawav02.ext)for participants who are owed benefits but whose benefits are no longeraccruing.

For example, currentworkers covered under a plan, whether or not they have begun to participate,are typically active. Terminated workers, whether receiving benefitsor awaiting deferred benefits, are typically inactive.

As part of your PensionAdministration setup, you match each pension status code to one ofthe following valuation categories: Active, Inactive, BothActive and Inactive, or Done (no liability remaining).

The Actuarial ValuationExtract uses these categories to determine whether to put participantsinto the active or inactive extract files. If a participant has hadmore than one valuation category since the last valuation, then thesystem refers to the Actuarial Valuation Matrix that you define todetermine which of the extract files should house the participant'sdata. For example, Onslow was active as of the last valuation andis now inactive, so the system must refer to the matrix.

Note: Workers appearing inthe extract for the first time have the prior year category No Record Exists.

The active extract fileincludes the following information:

• EMPLID.

• PENSION_STATUS: PensionStatus.

• ACTION: The action in theparticipant's job record as of the valuation as of date.

• ACTION_REASON: Reason associatedwith the action.

• LOCATION: Location.

• COMPANY: Company.

• EMPL_TYPE: Worker type:salaried, hourly, or exception hourly.

• STD_HOURS: Standard hours.

• COMP_FREQUENCY: Compensationfrequency.

• COMPRATE: Compensationrate.

• NAME: Name.

• NATIONAL_ID: National ID.The system only uses a participant's U.S. national ID (social securitynumber).

• SEX: Gender.

• MAR_STATUS: Marital status.

• BIRTHDATE: Birth date.

• QDRO_IND_YN: Flag thatindicates whether a participant has any QDROs attached.

• ORIG_HIRE_DT: Originalhire date.

• ACTUAL_EARININGS: Actualpension earnings since the last actuarial valuation. These are theearnings calculated by the function result identified in the reportsparameters.

• ACTUAL_HOURS: Actual pensionhours since the last actuarial valuation. These are the hours calculatedby the function result identified in the reports parameters.

• BENEFIT_SERVICE: Totalbenefit service accrued as of the extract as of date for the functionresult identified in the reports parameters.

• VST_SERVICE: Total vestingservice accrued as of the extract as of date for the function resultidentified in the reports parameters.

• END_BALANCE: Total participantaccount balance as of the extract as of date for the function resultidentified in the reports parameters.

• BEN_BIRTHDATE: The designatedbeneficiary's birth date. If there is no explicitly named beneficiary,the spouse is assumed to be the beneficiary.

• BEN_SEX: The designatedbeneficiary's sex. If there is no explicitly named beneficiary, thespouse is assumed to be the beneficiary.

The inactive extractfile includes the following information:

• EMPLID.

• PENSION_STATUS: Pensionstatus.

• LOCATION: Location.

• COMPANY: Company.

• NAME: Name.

• NATIONAL_ID: National ID.The system only uses a participant's U.S. national ID (social securitynumber).

• SEX: Gender.

• MAR_STATUS: Marital status.

• BIRTHDATE: Birth date.

• QDRO_IND_YN: Flag thatindicates whether a participant has any QDROs attached.

• ORIG_HIRE_DT: Originalhire date.

• BENEFIT_PLAN: Name of thepension plan identified in the actuarial valuation report parameters.

• APPLIES_AT_DATE: Date paymentsbegan.

• PAY_STATUS: Pay statusfor the pension plan identified in the actuarial valuation reportparameters: active, deferred, or stopped.

• PAYEE_TYPE: The payee type:retiree, beneficiary, or QDRO alternate payee.

• PYMT_FREQ: The paymentfrequency for pension payments.

• FORM_CODE: Code that identifiesthe optional form of payment.

• PMT_AMT: Payment amount.

• PMT_END_DT: The date ofthe last pension payment, if known.

  See Also

  A survey found that the American family generates an average of 17.2 pounds of glass garbage each year. Assume the standard deviation of the distribution is 2.5 pounds. Find the probability that the mean of a sample of 35 families will be between 16 and 1Retirement Calculator

The Actuarial ValuationExtract produces the following warning messages. These warnings donot cause an abnormal termination of the program. They may explainwhy certain participants do not appear on the inactive or active files.

• Message: Valuation codenot assigned to pension status [status]. Therefore no active or inactivefile is written for this employee [EmplID].

  Cause: Pension status hasno corresponding valuation category.

• Message: Valuation matrixinvalid for CY_VAL_CODE [current year valuation category] PY_VAL_CODE= [prior year valuation category]. Therefore no active or inactivefile is written for this employee [EmplID].

  Cause: The current yearcategory and prior year category combination is not defined in theActuarial Valuation Matrix.

• Message: There isn't avalid payee setup for EmplID [EmplID].

  Cause: You have not setup a payee record, and this record is required.

• Message: There isn't avalid payment schedule for EmplID [EmplID].

  Cause: You have not setup a payment schedule, and this is required.

This SQR creates a datafile with a participant's language, name, plan, and benefit amountsfor the following optional forms of payment: single life annuity,5 year term certain, 10 year term certain, 15 year term certain, lumpsum, 50 percent joint and survivor participant and beneficiary amounts,66 1/2 percent joint and survivor participant and beneficiary amounts,75 percent joint and survivor participant and beneficiary amounts,100 percent joint and survivor participant and beneficiary amounts.

Run this SQR as a prerequisiteto running the following participant letters reports: PAWQL01–03 andPAWRL01–02.

This SQR creates a file,pawpc01.ext, containing the participant information that is requiredfor annual IRS reporting.

It counts participantsby categories that are based on their pension statuses and vestingpercentages, and provides the total number of participants to reporton various lines of the Form 5500.

Periodic processingupdates the pension statuses and vesting percentages. In order toproduce up-to-date participant counts, you need to run periodic processingbefore you run PASPC01.

You run periodic processingon the Batch Periodic Process page. Select the Pension Status and Service options.

Note: There is no vestingoption on the Batch Periodic Process page. Vesting runs when you runservice processing.

The following list showshow the status codes map to Form 5500 item 7.

• APR, AVS, ANS, A70 aremapped to (a) 1, if the vesting percentage is 100.

• APR, AVS, ANS are mappedto (a) 2, if the vesting percentage is greater than zero and lessthan 100.

• APR, AVS, ANS are mappedto (a) 3, if the vesting percentage is zero.

• TNV is mapped to (h), ifterminated within the reporting year.

• TDF is mapped to (c).

• TDF, TST, TPY, RDF, RPYare mapped to (h) if terminated within the reporting year and thevesting percentage is less than 100.

• TPY is mapped to (b).

• RDF is mapped to (c).

• RST is not included.

• RPY is mapped to (b).

• XBP is mapped to (e).

• XNB is not included.

• DDF is mapped to (c).

• DST is not included.

• DPY is mapped to (b).

• BDF is mapped to (e).

• BST is not included.

• BPY is mapped to (e).

The following list showshow the Form 5500 line numbers map to pension codes:

• (a) 1 is mapped to APR,AVS, ANS, A70 if the vesting percentage is 100.

• (a) 2 is mapped to APR,AVS, ANS if the vesting percentage is greater than zero and less than100.

• (a) 3 is mapped to APR,AVS, ANS if the vesting percentage is zero.

• (b) is mapped to TPY, RPY,DPY.

• (c) is mapped to TDF, RDF,DDF.

• (e) is mapped to BDF, BPY,XBP.

• (h) is mapped to TNV ifterminated within the reporting year.

• (h) is mapped to TDF, TST,TPY, RDF, RPY if terminated within the reporting year and the vestingpercentage is less than 100.

Participants who terminatedor retired within the reporting year with a vested percentage of lessthan 100 may be counted twice. The second occurrence is on line (h).This is acceptable because this line item is not part of the totalparticipant count. It simply notifies the IRS of a possible partialtermination.

You must calculate thetotal for row (i). This total is not printed on this report. To calculatethis total, add the participants with pension status codes TDF, RBP,XDF, and DDF who terminated in the current 5500 reporting year andwho have not been paid out (either completely or in part) by the duedate for filing Form 5500.

Note: This is specified inIRS Form 5500 Schedule SSA for 1995, which revised the required reportingdeadline.

QDRO recipients whoare not otherwise participants in their own rights are not included.

Participants who are70 or older are presumed to be 100 percent vested. For Form 5500 reporting,they are counted as active and not receiving payments, in order toavoid counting them twice.

The Form 5500 extractfile includes two rows of data:

• The first row identifiesthe Form 5500 line numbers: A1_COUNT, A2_COUNT, A3_COUNT, B_COUNT,C_COUNT, E_COUNT, H_COUNT.

• The second row providescounts by line number.

This SQR creates a datafile with a participant's language, name, address, national ID code(U.S. social security number), and the current date.

You run this SQR asa prerequisite to running the following participant letters reports:PAWQL01–L03, PAWRL01–02.

Note: You can also run PASOF1(as an alternative to PASTDEXT) to create the extract file.

To run this report:

• Select the language touse for the report: the language specified in the Language field,or the recipient's language. This option only works if there are multiplelanguage versions of the report available.

• Enter the participant'sEmplID.

• Enter the calculation name.

• Select the benefit planthat produced the optional forms of payment results.

• Select the name of theoptional forms of payment result. This is the specific optional formset that you want to print in the letter. For example, if the planproduces optional forms for both normal and late retirement, enterthe name of the form to print in the letter.

This SQR provides summaryinformation about a calculation and its benefit formulas.

The Calculation sectionprovides the calculation description and name, the rules as of date(which determines the effective date to use when determining the appropriateplan rules), and the calculation run date and time. It also includesthe calculation reason that was the basis for the calculation.

The Plan section includesthe assumed benefit commencement date or age and the lump sum dateor age.

The Plan section usesthe 10-character names that you assigned to the calculation components,not their full descriptions. For each plan, the report prints theformula, shown as an equation, followed by the individual componentsand their values.

The report providesthe formula and the values of formula components for each benefitamount. Multiple benefit amounts may reflect reduced and unreducedbenefits, employee-paid and employer-paid benefits, grandfatheredbenefits, benefits before and after a QDRO offset, and any other benefitsthat your organization calculates.

This SQR provides aworksheet of the results for a particular calculation. It includesbasic calculation data and inputs and the detailed results for eachcalculation component.

The Employment Historysection provides a history of action and reason codes and the employeetypes in a participant's job record.

The Plan Overrides sectionshows any projection assumptions you entered, any beneficiary overrides,and your choice of whether to grant full service credit to participantswith purchasable service balances.

The Beneficiary Informationsection shows whether a spouse (the "plan beneficiary") meets eligibilityrequirements for an automatic benefit. This section also providespersonal data about any non-spouse ("contingent") beneficiary.

The Function ResultOverrides section shows any overrides you entered for specific plancomponents.

The Optional Forms sectionshows each of the optional forms of payment that is available to theparticipant. Depending on how you set up the calculation job stream,there may be multiple form sets based on different commencement dates,typically normal and early retirement.

The following informationis printed for each form:

• Form: The formof payment (for example, a single life annuity, a joint and survivor,or a lump sum).

• Guaranteed Payment: The number of years of guaranteed payment (for example, 5 years).

• Percent Continued: The percentage continued if there is a survivor benefit.

• Factor: Thefactor used to convert the benefit to this optional form of payment.

• Type: The paymenttype. Each form in a form set has a different type of payment. Forexample, joint and survivor forms show both retiree amount and beneficiaryamount. (A "plan beneficiary amount" is for a participant's spouse,and a "nonspouse beneficiary amount" is for any other beneficiary).Level income option forms show both retiree pre-SSRA amount and retireepost-SSRA amount.

• Total (Unlimited), NonTax(Unlimited), Total (Limited), NonTax (Limited): Becausequalified pension benefits are limited under the Internal RevenueCode Section 415, the report prints both the unlimited and limitedamounts. The limited amount is the actual payable amount. The unlimitedamount is informational only.

  For each payment type,the report prints the total amount and any nontaxable portion of thatamount for both the unlimited and limited amounts.

The Benefit Calculationsection shows the normal and early retirement dates and all the benefitamounts that were calculated. This may include reduced and unreducedbenefits, employee-paid and employer-paid benefits, grandfatheredbenefits, and any other benefits that your organization calculates.

For each benefit, thereport prints the benefit amount, a description of the benefit, anda description of the normal form of payment, including any automaticspouse benefit. The amounts shown do not reflect reductions causedby applying Internal Revenue Code Section 415 limits.

The Service sectionshows all the service calculations for the participant. Dependingon how you set up the calculation jobstream, there may be multipleservice calculations for participation service, vesting service, andservice credit.

The following informationis printed for each service calculation:

• Description of the typeof service.

• Years as of Event Date: The final amount of service accrued as of the event date.

• Period Start, Period End: The start and end dates of the service period.

• Process Through: The end of the period for all complete periods and the event datefor the final period.

• Hours: Thenumber of hours the worker has. This is zero for elapsed time servicecalculations.

• Breaks for Period: Whether the period counts toward breaks. This is 1 for break periodsand zero for non-break periods.

• Accumulated Breaks: The number of consecutive breaks, including this period.

• Service w/ Breaks: The amount of service for which the worker receives credit after breakrules are applied. This is the basis for the total service accrual.

• Service w/o Breaks: The amount of service for which the worker receives credit before breakrules are applied. This is informational only.

• Service Adjustment: The total adjustments applied to service during the period. Serviceis commonly adjusted when workers withdraw contributions and thusforfeit their previous service, when workers repay contributions torestore forfeited service, and when workers purchase service.

• Accumulated Service: The total amount of service accumulated as of the period end date,taking into account breaks in service and any service forfeiture orrestoration.

Note: If you enter a functionresult override for a service calculation, there are no detailed results.

The Final Average Earningssection shows all the final average earnings (FAE) calculations forthe participant.

The report prints theFAE amount and its description, and a detailed breakdown of the participant'sconsolidated earnings history. If your earnings definition uses onlya specified number of periods, the report only prints rows for asmany periods as the system needed to evaluate to come up with thatnumber. This may be more than the specified number of periods if yourdefinition ignores zero periods, final periods, or other periods.

The following informationis printed for each period:

• Start Date, End Date: The start and end dates of the earnings period.

• Last Process Date: The end of the period for all complete periods.

• Projected Y/N: P means that the earnings were projected.

• Actual Earnings: Shows the earnings from payroll.

• Generated Earnings: Shows the earnings for the period if your plan rules caused thesystem generate earnings.

• Adjusted Earnings: Shows the final earnings amount after all generations and adjustments.This is the amount actually used in the averaging process.

• Portion of Earnings Used: This is 0 when the earnings are not included in the average and 1 when the earningsare included.

The Vesting sectionshows the vesting percentage as of the event date.

The Age Adjustment Factorssection shows any early or late retirement adjustments. This includesplan early and late retirement factors, and may include actuarialadjustments that are applied to 415 limits for early or late benefitcommencement.

For each factor, thereport prints the description and the factor.

The Death AdjustmentFactors section shows the reduction factor applied to a participant'sbenefit when the plan requires the participant to pay for coverageunder the plan's preretirement survivor annuity offering. The reportshows the final factor and the length of the coverage period.

The Covered Compensationsection shows the participant's covered compensation: the averageof the taxable wage bases for the 35 years up to and including theparticipant's social security normal retirement age. The amount iseither a monthly or annual figure, depending on how you express coveredcompensation for your plan.

The Social Securitysection provides the participant's social security retirement age,the estimated social security benefit at that age, the assumed socialsecurity commencement date, and the estimated social security benefitat that date.

Note: Detailed informationabout how the social security amounts were calculated is availablein a separate report, PAT06C - Social Security Worksheet.

The Account Balancessection prints information on cash balance accounts. It includes thefinal account balance as of the event date.

Note: This balance is labeled Accumulated as of BenefitCommencement Date, but it is actually as of the event date.

The report prints thefollowing information for each period:

• Start Date, End Date: The start and stop date of the period.

• Beginning Balance: The beginning account balance for the period.

• Earnings: Earningsfor the period.

• Credit for Period.

• Contribution Rate: The percentage of earnings credited to the account.

• Interest for Period.

• Interest Rate.

• Adjustment for Period.

• Interest for Period: Interest adjustments for the period

• Ending Balance.

The Employee Accountssection prints the final account balance as of the benefit commencementdate.

The report prints thefollowing information for each period:

• The start and stop dateof the period.

• The interest earned onthe prior period balance.

• The pretax credits (deductions)for period, the interest earned on the prior pretax credit balance,and the new totals for pretax credits and pretax interest after thecurrent period amounts are added to the balance.

• The posttax credits (deductions)for period, the interest earned on the prior posttax credit balance,and the new totals for posttax credits and posttax interest afterthe current period amounts are added to the balance.

• Contribution rate, whichis the percentage of earnings contributed.

• Interest for the period.

• Interest rate.

• Adjustments and interestadjustments for the period.

• Ending balance.

The Plan Eligibilitysection shows whether the participant was eligible as of the eventdate and provides a history of the participant's eligible and ineligibleperiods.

The Plan Participationsection shows whether the participant is participating and, if so,when the participant became a plan participant.

The Benefit Eligibilitysection shows each retirement type that is defined in the system andwhether the participant is eligible or ineligible for that retirementtype.

The middle column printsthe system's internal name for the retirement type.

The Limit 415 sectionprints information about how the system determined the Section 415limits and applied the limits to the participant's benefit.

There are two componentsto the 415 limit:

• FAE Limit/Adjusted: The final average earnings (FAE) limit. This amount can be adjustedfor early or late benefit commencement.

• Maximum 415(b) Limit/Adjusted: A dollar limit published by the IRS and known as the "maximum 415(b)dollar limit." This amount can also be adjusted for early or latebenefit commencement.

The lesser of the aboveamounts is used as the final limit.

Historically, therewas a third limit, which has been repealed. However, it still a limitingfactor for calculations with certain historical benefit commencementdates. This combined fractional limit restricts the total amount aparticipant can receive from both defined benefit and defined contributionplans. The historical rule is that the sum of the "defined contributionfraction" (DC fraction) and the "defined benefit fraction" (DB fraction)cannot exceed 1. If the sum is greater than 1 and the DC plan is primary,the defined benefit is reduced until the sum equals one. These fractionsare calculated according to rules that were laid out by the InternalRevenue Code.

Because this limit appliesto certain historical calculations, the following fields are printed:

• 415(e) Limit: The historical limit on the total amount a participant can receivefrom defined benefit and defined contribution plans.

• DC Fraction: The defined contribution fraction used to calculate the historicallimit.

• DB Fraction: The defined benefit fraction used to calculate the historical limit.

The following fieldsare also printed:

• Total SLA Benefit: The participant's total single life annuity (SLA) benefit from allplans included in this calculation.

• Limit Used: The limit that was used (the lesser of the applicable limits).

• Reduction: Theamount of the reduction.

The report prints thefollowing information for the benefits that are subject to 415 limits:

• Order.

• Benefit Plan.

• Function result.

• Pmt amtl: Theunlimited payment amount.

• L415 Pmt amtl: The limited payment amount.

• For 415 Only: If this is Y, the plan does not offer a single life annuity, andthe annuity value shown is used only in the 415 limit calculation.

• User Reduction: The reduction amount.

• Proration Pct: The reduction factor.

This SQR provides detailedinformation about how the system calculates a participant's socialsecurity benefits:

• Primary Insurance Amount: The social security primary insurance amount (PIA) as of the participant'snormal social security retirement age.

• Adjusted Primary InsuranceAmt: Includes both general increases and increases orreductions based on the assumed social security commencement date.This is normally considered the "actual" social security retirementbenefit.

• Eligibility Year: The year the participant reaches age 62, or the year of death ordisability.

• NAW Indexing Year: The national average wage (NAW) indexing year. This is two yearsbefore the year of eligibility.

• NAW Index Year Amount: The national average wage for the indexing year.

• # of Computation Years: The number of years of the participant's lifetime earnings historythat is used in determining social security.

• AIME: The averageindexed monthly earnings (AIME) is calculated by taking the lesserof the participant's earnings and the taxable wage base for each computationyear, indexing it with a factor representing the growth in the nationalaverage wage, and dividing the total by the number of computationyears and then again by 12. This is adjusted further by "bend point"factors to determine the initial PIA.

• Birthdate: Determinesthe social security retirement age.

• Social Security Age: The social security retirement age.

• Social Security BCD: The assumed benefit commencement date for social security benefits.

For each year, the reportincludes the following earnings information that is used for socialsecurity calculations:

• Taxable Wage Base Amount: xx

• Actual Empl Earnings: The participant's actual earnings.

• Taxable Earnings: The lesser of the taxable wage base amount or the participant'sactual earnings.

• Natl Avg Earnings: The national average earnings (NAW).

• Indexed Amount: Calculated by multiplying the taxable earnings by a factor. Thefactor is calculated by dividing the NAW for the indexing year bythe NAW for the year being indexed.

• Indexed Amount Used inCalc: The earnings amount used for a year that is includedin the AIME computation period.

For each participant,this report includes the following information about the scheduled(recurring) and one-time payments in the selected pay run:

• Payment reason.

• Payment reason for one-timepayments.

• Provider and Provider Name: Funding provider and name.

• Payment Amount: Total payment amount.

• Nontax Payment Amount:Nontaxable portion of the payment amount.

• Form Code and Form Description: Optional form of payment for scheduled payments, and its description.