Pension Plan Rules OverviewThis chapter discusses:
Pension plan rules.
Business processes.
Rules and data setup.
Administrative information setup.
Administrative processes.
Periodic processing and benefits calculation.
Pension Administration pages.
Report generation.
Pension Plan Rules OverviewEvery pension plan is unique, so Pension Administration offers maximum flexibility for implementing pension plan rules. Nineteen core functions combine to produce a final pension benefit in all its optional forms of payment. Each of these functions has an extensive set of parameters for mapping to the plan rules. If the parameters must be modified, numerous predefined user exits exist for custom code.
The effective date design of the PeopleSoft system gives you a complete history of the pension rules, whether they were changed two years ago or whether the desired change is two months away. You can “roll back” the system to a particular point in time from which you can perform historical calculations for employees to ensure against cutbacks due to plan amendments or regulatory changes. In addition, you can project the impact of potential plan changes on employee benefits.
Special employee group processing enables using different rules for employees who meet specific criteria—for example, eligibility for grandfathered benefits, eligibility for a special incentive early retirement offering, or any other criteria you specify.
Business ProcessesPension Administration supports the following business processes:
Set Up Administration Information.
Some general administrative tasks relate to the plan itself, rather than to specific plan participants that you set up in the system: basic identifying information, valid funding providers, companies used to house the plan's payees in the PeopleSoft system, and generic checklists for administrative processes.
Administer Active Employees.
Even before employees retire, it is important to work closely with them. Using Pension Administration, it is possible to check an employee's pension accruals, administer employee contributions to contributory plans, verify tax elections, update beneficiary information, or look at any of the multitude of information that affects the plan participants.
Calculate Benefits.
Pension Administration enables producing on-demand pension calculations for individuals and groups, and scheduling batch calculation runs. Estimates and “what-if” calculations automatically incorporate the projection rules you have defined. Effective-dated plan rules enable producing historical calculations and allow for easy administration of grandfathering and “better of” benefits.
Administer Payees.
Pension Administration tracks all types of pension payees: retirees, their beneficiaries, and alternate payees entitled to a portion of a pension benefit due to a Qualified Domestic Relations Order (QDRO). Activity and communications tracking enable monitoring forms, waivers, verifications, and all the other paperwork associated with pension benefits. PeopleSoft assumes that a third-party trustee produces pension checks and W-2P and 1099-R forms. A trustee extract provides the trustee with the necessary payment instructions, including tax elections, direct deposit information, and deductions. The system keeps a running summary of total taxable and nontaxable benefits paid so you can ensure that retirees completely recover any contributions they have made toward their pension benefits. An actuarial valuation extract provides the plan actuary with the information needed to make a determination of plan liabilities. Participant counts can be used for Form 5500 reporting.
Rules and Data SetupTwo tasks must be completed before using Pension Administration:
Establish all processing rules.
The biggest part of this job is setting up calculation rules; but it is also necessary to set up pension status processing (used for Form 5500 participant counts and the actuarial valuation extract) and the retiree administration control tables.
The steps involved in establishing the processing rules are covered in “Understanding Plans.”
Get employee data into PeopleSoft tables.
The nature of pension calculations may require moving an entire career’s worth of information into the system.
See Also
Getting Started with Pension Administration
Employee Data SetupEvery part of the pension administration system is tied to information about employees. Where does that information come from?
If the pertinent information exists in your PeopleSoft Enterprise HRMS integrated database, it is automatically available. PeopleSoft Enterprise Human Resources provides benefit plan data, personal data, and job data, and tracks human resources events and statuses. PeopleSoft Enterprise Payroll for North America provides information such as hours and earnings. All of this data is automatically and transparently accessible to Pension Administration.
When using another human resources system and a standalone version of Pension Administration, it is necessary to transfer biographical and startup data into the PeopleSoft system during implementation; then, you update the PeopleSoft tables when necessary.
Because pension calculations can require data from an employee’s entire career, some information may not exist in the PeopleSoft system. It is possible to load entire working histories for employees—or, if there are no retroactive plan changes, startup values can be used to represent accruals up to the time the history becomes available. For example, rather than loading 20 years of payroll data, it is acceptable to load precalculated service amounts for those years.
See Also
Administrative Information SetupThis section discusses:
Administrative tasks
Plan administration setup
Public table maintenance
Administrative Tasks OverviewMost day-to-day activities involve working with employees and other plan participants as they accrue and then receive pension benefits. However, some general administrative tasks relate to the plan itself, rather than to specific plan participants. These are discussed in this section.
Plan Administration Information SetupSet up several types of plan administration information in Pension Administration.
Set up basic identifying information:
The plan's administrator.
The plan’s employer identification number (EIN).
The plan address.
Establish valid funding providers for the plan.
Select providers from this list when identifying the funding source on a pension payee’s payment instruction. The funding provider information then gets included in instructions you send to the third-party trustee who cuts the pension checks.
Identify the company (or companies) used to house the plan’s payees in the PeopleSoft system.
Payee records in the PeopleSoft HRMS system use the same data structure as employee records. This means that you identify companies, jobs, locations, and other employment-related information in the payee records. Much of this data is generic to all payees. For example, you can establish a single job to use for all retirees. It’s important, however, to use the appropriate company for each plan so that you can link the payee’s tax elections, which are entered by company in PeopleSoft Enterprise Payroll pages, with the payments from that plan.
Set up generic checklists (“activity lists”) for administrative processes involving work with plan participants.
Set up checklists for the event processing types, such as terminations, retirements, and deaths. You can set up different checklists for different types of plan participants:
Retirees.
Beneficiaries.
QDRO alternate payees.
Public Table MaintenancePension Administration implementation involves setting up all the processing for accurate pension calculations. The calculation rules may refer to certain public tables, such as the Maximum Taxable Wage Base, Federal Mid-Term Interest Rates, and other tables used to calculate social security, interest rates, and Internal Revenue Code section 415 and 401(a)(17) limits.
Even though calculation rules do not change, the tables referenced by those rules change. Therefore, you must update these tables to ensure that correct values are used in calculations.
See Also
Understanding Calculation Rules
Administrative ProcessesThis section discusses:
Administrative processes.
Employee pension data review and maintenance.
Pension data maintenance.
Defined benefit contributory plans administration.
Activity checklist usage.
Administrative Processes Overview
After setting up your employee data and plan rules, you can start using Pension Administration to help with ongoing administrative processes.
Pension Administration is far more than a pension calculator. The system supports a broad range of processes necessary for day-to-day and periodic business needs.
Employee Pension Data Review and MaintenanceA pension is often based on the entire work history of an individual. This could be as much as 30, 40, or even 50 years. Many things can happen over such a period of time. People get raises, change work schedules, marry, divorce, name beneficiaries, change beneficiaries, take death coverage, cancel death coverage, go on disability, come off disability, retire, and die.
With Pension Administration, pension data is always available. Data is readily available to verify tax elections, update beneficiary information, or view the information that affects plan participants. The employee data pages are a useful tool for employee retirement counseling. When employees have questions about their earnings or service history, you can use these pages to review the data with them.
Active Employee Administration
Even before employees retire, it is important to work closely with them. When they ask about their pension accruals, you can look up the information and thereby demonstrate the integrity of the personal and job information used in calculations.
If the organization sponsors contributory plans, you are involved in a number of tasks specific to administering employee contributions.
Pension Administration provides a number of pages for viewing information about active employees.
The Review Employee Information pages (in the Pension, Pension Information menu), enable viewing personal data about employees and beneficiaries.
The Review Job History pages (in the Pension, Pension Information menu) enable viewing data related to employees’ jobs including: salary rates, hourly or salaried status, full- and part-time status, regular or temporary status, and the action and reason history.
Note. Data in these two components cannot be edited on the pension pages because it is “owned” by the human resources department. To make changes to the data, select Workforce Administration, Personal Information or Workforce Administration, Job Information.
The Review Plan History pages (in the Pension, Pension Information menu) enable viewing the results of certain periodic processing functions including:
Eligibility and participation history
Service history
Cash balance history
Employee account history
Note. The Review Plan History pages show the results of periodic processing; you cannot use these pages to edit this information. You can make manual adjustments to the service, cash balance, and employee account information by selecting Pension, Pension Information, Update Employee Plan Data. The next periodic processing run picks up the manual adjustments. After it runs, the Review Plan History pages show the updated information.
Pension Data MaintenancePension Administration provides pages for maintaining certain pension-specific employee information (some of it used in pension calculations) that the basic human resources records do not necessarily include.
The Employee Pension Status page enables viewing and maintaining employee pension statuses for each plan. For the most part, these statuses are automatically maintained, but in some cases—notably when an employee retires or dies—the information must be manually updated.
The Update Employee Plan Data component includes several pages for entering employee pension information:
The Cash Balance Adjustments, Employee Account Adjustments, and Service Adjustments pages enable making manual adjustments to each type of accrual.
The Prior Plan History page enables entering information about minimum plan benefits based on amounts accrued under prior rules or under a prior plan, such as a plan sponsored by a company that you have acquired.
The calculation does not automatically apply these minimum benefits, but it produces a message on the calculation worksheet if any result is less than a stored minimum. Although you typically load both startup data and prior plan data as part of the initial data conversion, if necessary you can use these pages to view and maintain the data.
Use the Startup History page to enter opening balances that were in effect before you implemented Pension Administration.
Use the PRSA Coverage History page to record employees’ coverage under a plan’s Preretirement Survivor Annuity (PRSA).
This is death coverage that provides a benefit to the surviving spouse if an employee dies before retiring. You only need to record this information if you charge employees for this coverage.
Use the Historical 415(e) page to track information needed to calculate Internal Revenue Code (IRC) Section 415 limits for employees who participate in both defined contribution and defined benefit plans.
For these employees, data entered on this page signals the system to ignore the 415(b) limit minimum that applies only to defined contribution non-participants. It is also used to determine the historical 415(e) limit in calculations for which the limit is historically effective. Although legislation has repealed IRC Section 415(e), it is still applicable to calculations with certain historical benefit commencement dates.
Because PeopleSoft Enterprise HRMS does not support the administration of defined contribution plans, you need to get the information for the historical 415(e) calculation from an outside source and enter it into the system.
The 415 function needs to know the “historical defined contribution fraction,” a number calculated according to specific historical IRS rules. However, you can use any non-zero value to indicate an employee's participation in a defined contribution plan.
Use the Review Consolidation Results pages to view the calculated results of Pension Administration’s consolidation process. This is the process that gathers payroll earnings, hours, and contributions into monthly or yearly accumulations. You can also override the information, if necessary.
Use the Social Security Earnings page to enter career earnings information that employees provide, enabling you to perform more accurate social security calculations.
Use the Pension Plan Beneficiaries page to track employees’ pension beneficiaries. You only use this page for recording beneficiaries who are not spouses. If you do not enter data on this page, the system assumes that a beneficiary is a spouse.
Defined Benefit Contributory Plans AdministrationAdministering contributory plans involves the following administrative tasks:
You work with the benefits and payroll departments to ensure that the correct deductions, mandatory and voluntary, are taken out of employee’s paychecks.
When contributing employees terminate, you may need to refund contributions.
If these employees are rehired, you may need to administer any service buyback program available to employees who repay the withdrawn contributions.
If the plan offers a service purchase program, you need to establish purchasable service, track payments, and credit both the employees' contributory accounts and service accounts as payments are made.
Activity Checklist UsagePension Administration enables creating checklists for recording and tracking administrative activities. These “activity lists” help you manage the tasks, forms, verifications, waivers, elections, and other paperwork required.
See Also
Maintaining Employee Pension Data
Administering Contributory Plans
Periodic Processing and Benefits CalculationThis section discusses periodic processing and benefits calculation.
Periodic Processing OverviewPeriodic processes are run on a regular basis to preprocess certain calculation data and perform housekeeping tasks. Preprocessing not only saves time, it also enables you to readily access up-to-date information when researching issues for employees.
Pension Administration handles all the data involved in pension calculations. In a single step, you can estimate benefits for any combination of employees and plans or plan components.
Periodic processing enables consolidating payroll data for use by the calculation process. Periodic processing also keeps certain plan information up to date and available for review in the employee inquiry pages.
It is possible to run processes for all employees, for individual employees, or for groups of employees, and for one plan or all plans.
To run periodic processes, select Pension, Periodic Processes, Request Process.
Periodic pension processes enable you to:
Establish history for plan eligibility and participation.
Consolidate payroll data:
Earnings.
Hours.
Contributions.
Maintain balances:
Service.
Cash balance accounts.
Employee (contributory) accounts.
Update pension statuses.
Update plan dates.
Archive payroll data.
Delete calculations.
Periodic processes, by definition, run on regular cycles. Several (or even all) processes can be run as a single job as long as they use the same cycle. To run some processes monthly and others annually, run them as two different jobs.
When the system detects erroneous data for an employee, periodic processing stops for that employee and restarts with the next employee. The system checks for valid data, such as date of birth, date of hire, and date aliases. Erroneous data is written to the table PS_PA_EE_ERR_TBL. Use this table to examine the erroneous data.
Benefits Calculation OverviewOne of the most important aspects of administering a pension plan is calculating pension benefits. You use periodic processing to keep certain plan information up to date, then you run calculations to calculate benefits, based on specific termination or retirement dates (“event dates”).
Calculations determine the benefits owed to pension plan participants. Running a calculation applies all your plan rules to a specific employee base for a specific event date. The “event” can be preretirement, termination, retirement, or in-service death or disability. It has a specific benefit commencement date. The calculation produces a final benefit amount in all the available optional forms.
You can run estimates based on projected data: projected hours and earnings, specific assumptions for increasing the rate in an employee’s salary, the taxable wage base, and other pension data.
You can get immediate results for small calculation runs, or schedule large runs for later. If you save a calculation, you can rerun the process either with a revised set of assumptions or for a final calculation.
If you want to run calculations for several employees in one batch job—for example, to produce annual benefit statements or notices for a special early retirement window—you can create calculation groups and run several calculations at once.
You can look at the calculation results online or print worksheets showing results for individual employees.
See Also
Employee Retirement ProcessingThis section discusses:
Retirement processing
Payee setup
Pension payment processing
Retirement Processing Overview
Before an employee can receive pension payments, a number of steps are required. These steps include verifying birth dates and marital status, producing and verifying a final calculation, and obtaining spousal waivers and payment elections. After these preretirement tasks are complete, you can tell the system to begin making pension payments.
Using Pension Administration, you can:
Track all preretirement tasks.
Indicate the calculation on which you base payments.
Indicate an employee's optional form selections.
Create the payment record that will be the basis for making payments.
Schedule payment instructions as far ahead as desired.
Payment instructions include:
Start payments.
Stop payments.
Payment adjustments.
Pension Administration assumes that retirees are paid by an external trustee and that the trustee handles all W-2P and 1099-R reporting.
Three types of people might receive a benefit under a pension plan:
Retirees (who were once employees).
Their beneficiaries.
QDRO alternate payees, former spouses who have a court-ordered right to a portion of an employee’s benefit.
You already track employee data by using an employee ID and all its associated data, such as personal data and job data. To track pension payee data, you also use the employee ID and the personal and job records.
For retirees, you use the existing employee ID. For beneficiaries and QDRO alternate payees, who start out as dependents or beneficiaries of employees, you select an existing employee ID if this person already has an employee ID, or create a new employee ID based on the person’s existing dependent or beneficiary data.
All three types of payees require new job records reflecting their roles as pension payees. You create a concurrent job for each plan under which a person is receiving a benefit. You do not use existing employee job records; all payee jobs are specific to pension processing.
The system provides a trustee extract, with all the information a third-party needs to produce the check and tax reports. This includes the check date and pay period, the payment amount, the tax elections, and any benefit deductions.
To set up the system for payment processing, you create a retiree payment calendar where you create run control IDs for each pension check run.
To prepare payments for individual pension payees:
Record a payee’s check information, including tax elections, direct deposit information, and any deductions.
Record the payee’s optional form selection, except for beneficiaries, who use the same optional form as the original employees whose beneficiaries they are.
Schedule recurring payments, using an effective date and status to indicate when the payments should start and stop.
You can also schedule one-time payments or adjustments as needed.
During a pension pay run, the system gathers payment-related information for all the scheduled payments. This information includes not only payment amounts, but also the tax elections, deduction information, direct deposit information, and funding providers for the payment. The payment process writes all this information to payment records, which you can review online or in a report before making a final “confirmation” pay run.
When you process a confirmation pay run, the system creates a trustee extract to put all the payment information in a file that you can then transfer to the third-party trustee who produces the pension checks. There are pages and a report for viewing the contents of the trustee extract.
See Also
Payee AdministrationThis section discusses:
Payee event administration
Non-employee payee administration
QDRO administration
Payee Event Administration
Certain events in the lives of pension payees require you to perform specific tasks. After employees retire and begin receiving payments, many things can still happen to affect their pensions. If a payee dies, you may need to stop making payments. Depending on the payment form, you may also need to begin payments to a beneficiary. If the payee chose a level income option, you may need to decrease payments when the retiree attains social security retirement age. Also, retirees may receive cost of living adjustments.
You manage most of these tasks by modifying the payment schedule to stop, start, or change payments.
Non-employee Payee Administration
In addition to employees and former employees, there are two other types of plan participants: pension beneficiaries and QDRO alternate payees, former spouses who have obtained a right to a pension benefit as part of a court-ordered divorce settlement. With Pension Administration, you enter both types of payees into the system as plan participants and store personal and payment-related information for them.
Pension Administration can automatically determine beneficiary payment amounts based on a retiree’s payment amount (including cost-of-living adjustments) and the selected form of payment.
Pension Administration tracks both types of non-employees through their IDs, and cross-references non-employees with the employees who originally earned the benefit.
When a Qualified Domestic Relations Order from the court instructs you to pay a specified portion of an employee’s benefit to an alternate payee, a number of things must be tracked, including information about the alternate payee and the benefit owed to that payee.
The system enables tracking QDRO information and communications from the first time you receive notification that a divorce settlement may include a division of pension benefits. After you have recorded the amount due to the alternate payee, you can apply early commencement reductions and convert the amount into the optional forms of payment available to the alternate payee.
There are two aspects to the system’s QDRO capabilities. On the administrative side, the system tracks information about the Domestic Relations Order (DRO), determines if it is, in fact, qualified and therefore a QDRO, determines the benefits due to the alternate payee, establishes the alternate payee in the system, and pays them through the same trustee extract used to pay retirees.
On the implementation side, you must ensure that you have set up plan rules in such a way that the QDRO calculations work correctly.
See Also
Pension Reporting and Data ExtractionPension Administration provides a number of sample participant letters, including a benefit selection letter outlining the available optional forms of payment.
The system also provides a calculation worksheet to use in detailing how a pension benefit was determined and a social security worksheet with similar information for detailing social security benefits.
To help you administer your plan, the system also includes a participant count report for the Form 5500 and an actuarial valuation extract, a data extract with information that the actuary can use to determine the plan’s liabilities.
Pension Administration PagesThis section discusses:
Pension Administration page groups.
Set Up HRMS menu group.
Pension menu group.
Pension Administration Page Groups
The Pension Administration pages are in two menu groups used primarily by PeopleSoft Enterprise Benefits and two menu groups used exclusively for pension processing.
Pension Administration includes two menu groups:
Set Up HRMS, Product Related, Pension.
Pension.
You use PeopleSoft Human Resources - Benefits to set up the pension plan and the employee deductions for pension contributions:
You set up pension plans under Set Up HRMS, Product Related, Base Benefits, Plan Attributes, Pension Plan Table.
You sign employees up for a pension plan under menu Benefits, Enroll In Benefits, USA - Pension Plans.
Set Up HRMS Menu GroupThere are several menus under Set Up HRMS, Product Related, Pension:
Calculation Rules
Variable Definitions
Status Rules
Components
Pension Plan Implementation
Utilities
Calculation Tables
Self Service Calc Defaults
Each menu is discussed in detail here.
In the Calculation Rules menu, you can define calculation methods to round, convert, limit, and project measurable pension concepts. Typically, these methods will be incorporated into larger, plan-specific definitions. Using the pages in the Calculation Rules menu, you can create:
Actuarial assumptions.
Interest methods.
Internal Revenue Code Section 401(a)(17) earnings limits.
Projection rules.
Custom statements.
Spouse eligibility alias.
Date and duration processing options.
Mortality rates by age.
Under the Variable Definitions menu, you can set up different types of aliases, which look up or measure employee-specific information:
Database aliases
Table lookups
Dates
Durations
Function result aliases
Actuarial factor aliases
The Status Rules menu includes setup pages for defining pension-specific employment statuses. These definitions enable Pension Administration to distinguish between active and inactive employee populations and to measure service. The Status Rules menu includes pages for:
HR action and reason categories, such as for job events.
Actuarial valuation matrix.
Active and inactive jobs.
Status codes.
Status code mappings.
You use the Components menu to set up the core plan-specific definitions used by the system's calculation functions. The core function types are:
Plan eligibility
Participation
Service-break rules
Service-elapsed time
Service-hours counting
Service-hours equivalence
Vesting
Benefits eligibility
Final average earnings
Cash balance accounts
Employee accounts
Social security
Covered compensation
Early/late adjustments
Death coverage
Benefit formula
Employee paid benefit
Optional forms
415 limits parameters
You also set up the other three consolidations definitions in the Components menu:
Earnings consolidation
Hours consolidation
Contributions consolidation
The Pension Plan Implementation menu contains pages where you set up critical plan-specific actions, such as the plan implementation, plan order, and plan aliases, as well as employee groups and function results. You apply the definitions that you created in the Components menu to a specific plan and construct the final calculation jobstream for the plan.
The Utilities menu contains useful ways to audit your plan implementation. It also includes the Pension Processing Trace page, where you can track down errors encountered during a calculation.
The Calculation Tables menu contains pages for setting up and maintaining a variety of important pension lookup tables such as 401(a)(17) limits, interest rates, and wage bases.
Note. You can access the Calculation Tables pages from either the Set Up HRMS menu or the Pension menu. Both menus have the same functionality, and you can update or view the same information in both locations.
On the Self Service Calc Defaults page, you can define rules specifying the functionality users have when calculating their own pension benefits online.
Pension Menu GroupThere are several menus in the Pension menu group:
Pension Information
Periodic Processes
Calculations
Review Calculations
Payments
Domestic Relations Order
Update Regulatory Information
Define Calculation Tables
Reports
Each menu is discussed in detail here.
On the Pension Information menu, you can:
View and maintain employee pension-related data, including data related to employee contributions.
Track pension-related activities and communications.
Administer information about payees, such as adjusting payment amounts, applying cost of living adjustments, and responding to the death of a payee.
You use the Periodic Processes menu to administer ongoing measurements for service, earnings, and contributions for a payee.
Use the Calculations menu to generate pension benefit amounts. You can:
Create calculations group lists.
Run calculations.
Produce calculation worksheets.
On the Review Calculations menu, you can look at different calculation results. It contains view-only pages.
The Payments menu contains pages where you create payees and process payments for active retirees. This includes pages where you can identify and schedule pension payments and produce the trustee extract.
The Domestic Relations Order menu contains pages where you track QDRO-related information.
The Update Regulatory Information menu contains pages where you can maintain employee-specific regulatory information, such as historical 415(e) limits and social security earnings.
The Define Calculation Tables menu is a duplicate of the Calculation Tables menu under Set Up HRMS. You can define your calculation tables under either the Set Up HRMS menu or the Pension menu.
The Reports menu contains pages where you can set up information to run pension reports.
See Pension Administration Reports.
Report GenerationThis section provides overviews of reporting and pension reports.
Reporting Overview
Pension Administration comes with standard reports that support a range of pension administration functions, from a detailed calculation worksheet to Form 5500 participant counts.
Many of the standard reports use MITI’s Structured Query Report Writer (SQR). Because you can use SQR to extract data from any SQL database, you can use this tool to create a wide variety of reports or to perform global database manipulations and interactive queries. You can use these reports as provided or modify them to meet your specific needs.
Certain delivered SQR extracts provide data you can merge with Microsoft Word for Windows templates to produce form letters. Several sample templates are provided.
You can use the Process Scheduler to streamline reporting. It enables you to run reports locally on a client workstation or remotely on a server, without exiting Pension Administration or using a third-party scheduling program. If you schedule reports to run on a server, you can choose to run them later. This can avoid tying up personnel and printer resources during peak periods.
To perform ad hoc and repeated queries on your PeopleSoft database, you can use PS/Query, a query tool that enables you to create new queries, run existing ones, and generate the results online or in printed reports.
See Also
Enterprise PeopleTools PeopleBook: PeopleSoft Process Scheduler
Pension ReportsThere are three types of pension reports:
Calculation result reports.
Calculation result reports include the non-detailed calculation worksheet, the calculation worksheet, and the social security worksheet.
Participant letters.
Participant letters help you communicate with employees. Several sample letters can be modified to meet organization requirements.
Data extracts:
Actuarial valuation.
The actuarial valuation extract contains data that your actuary needs to determine plan liabilities. The extract has two parts: the “active” extract, for those whose benefits are still accruing, and the “inactive” extract, for those who are owed benefits, but whose benefits are no longer accruing. Employees appear in one or both of these files, based on their pension status codes and the rules you define for categorizing those codes.
Form 5500.
The Form 5500 Participant Count report tallies participants, based on their pension statuses. It helps you meet the Form 5500 reporting requirements.
Trustee extract.
The trustee extract contains all the retiree payment information for a specific pay run. You give this to the third-party trustee who creates your pension checks.
See Also
Pension Administration Reports