Pension Administration: Selected Reports

The Trustee Extract file includes the payment-related data that a third-party requires in order to produce pension checks.

The system creates the Trustee Extract file when you run the Retiree Payment COBOL SQL process (PAPPPYMT) in Confirmation Processing mode. It writes the trustee extract data to the file that you define using the system variable TRSPYMT.

You can also create the Trustee Extract file outside of the Retiree Payment process. You only do this in unusual circumstances—for example, if you lose or damage the original file that is created by the Retiree Payment process.

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

• PAT08 - Trustee Extract Detailed Report

• PAT09 - Trustee Extract Summary Report – Record Type

This SQR may be run to view the payment results at an employee level. There are three choices to run the report (the user can choose the desired output on the run control page):

• Payment Details - Total.

• Payment Details - NonTaxable.

• Payment Information.

The Actuarial Valuation Extract provides data that your actuary needs in order to perform a 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 longer accruing.

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

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

The Actuarial Valuation Extract uses these categories to determine whether to put participants into the active or inactive extract files. If a participant has had more than one valuation category since the last valuation, then the system refers to the Actuarial Valuation Matrix that you define to determine which of the extract files should house the participant's data. For example, Onslow was active as of the last valuation and is now inactive, so the system must refer to the matrix.

The active extract file includes the following information:

• EMPLID.

• PENSION_STATUS: Pension Status.

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

• ACTION_REASON: Reason associated with the action.

• LOCATION: Location.

• COMPANY: Company.

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

• STD_HOURS: Standard hours.

• COMP_FREQUENCY: Compensation frequency.

• COMPRATE: Compensation rate.

• NAME: Name.

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

• SEX: Gender.

• MAR_STATUS: Marital status.

• BIRTHDATE: Birth date.

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

• ORIG_HIRE_DT: Original hire date.

• ACTUAL_EARININGS: Actual pension earnings since the last actuarial valuation. These are the earnings calculated by the function result identified in the reports parameters.

• ACTUAL_HOURS: Actual pension hours since the last actuarial valuation. These are the hours calculated by the function result identified in the reports parameters.

• BENEFIT_SERVICE: Total benefit service accrued as of the extract as of date for the function result identified in the reports parameters.

• VST_SERVICE: Total vesting service accrued as of the extract as of date for the function result identified in the reports parameters.

• END_BALANCE: Total participant account balance as of the extract as of date for the function result identified in the reports parameters.

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

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

The inactive extract file includes the following information:

• EMPLID.

• PENSION_STATUS: Pension status.

• LOCATION: Location.

• COMPANY: Company.

• NAME: Name.

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

• SEX: Gender.

• MAR_STATUS: Marital status.

• BIRTHDATE: Birth date.

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

• ORIG_HIRE_DT: Original hire date.

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

• APPLIES_AT_DATE: Date payments began.

• PAY_STATUS: Pay status for the pension plan identified in the actuarial valuation report parameters: active, deferred, or stopped.

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

• PYMT_FREQ: The payment frequency for pension payments.

• FORM_CODE: Code that identifies the optional form of payment.

• PMT_AMT: Payment amount.

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

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

• Message: Valuation code not assigned to pension status [status]. Therefore no active or inactive file is written for this employee [EmplID].

  Cause: Pension status has no corresponding valuation category.

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

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

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

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

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

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

This SQR creates a data file with a participant's language, name, plan, and benefit amounts for the following optional forms of payment: single life annuity, 5 year term certain, 10 year term certain, 15 year term certain, lump sum, 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 prerequisite to running the following participant letters reports: PAWQL01–03 and PAWRL01–02.

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

It counts participants by categories that are based on their pension statuses and vesting percentages, and provides the total number of participants to report on various lines of the Form 5500.

Periodic processing updates the pension statuses and vesting percentages. In order to produce up-to-date participant counts, you need to run periodic processing before you run PASPC01.

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

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

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

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

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

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

• TDF is mapped to (c).

• TDF, TST, TPY, RDF, RPY are mapped to (h) if terminated within the reporting year and the vesting 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 shows how 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 than 100.

• (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 if terminated within the reporting year.

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

Participants who terminated or retired within the reporting year with a vested percentage of less than 100 may be counted twice. The second occurrence is on line (h). This is acceptable because this line item is not part of the total participant count. It simply notifies the IRS of a possible partial termination.

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

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

Participants who are 70 or older are presumed to be 100 percent vested. For Form 5500 reporting, they are counted as active and not receiving payments, in order to avoid counting them twice.

The Form 5500 extract file includes two rows of data:

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

• The second row provides counts by line number.

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

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

To run this report:

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

• Enter the participant's EmplID.

• Enter the calculation name.

• Select the benefit plan that produced the optional forms of payment results.

• Select the name of the optional forms of payment result. This is the specific optional form set that you want to print in the letter. For example, if the plan produces optional forms for both normal and late retirement, enter the name of the form to print in the letter.

This SQR provides summary information about a calculation and its benefit formulas.

The Calculation section provides the calculation description and name, the rules as of date (which determines the effective date to use when determining the appropriate plan rules), and the calculation run date and time. It also includes the calculation reason that was the basis for the calculation.

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

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

The report provides the formula and the values of formula components for each benefit amount. Multiple benefit amounts may reflect reduced and unreduced benefits, employee-paid and employer-paid benefits, grandfathered benefits, benefits before and after a QDRO offset, and any other benefits that your organization calculates.

This SQR provides a worksheet of the results for a particular calculation. It includes basic calculation data and inputs and the detailed results for each calculation component.

The Employment History section provides a history of action and reason codes and the employee types in a participant's job record.

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

The Beneficiary Information section shows whether a spouse (the "plan beneficiary") meets eligibility requirements for an automatic benefit. This section also provides personal data about any non-spouse ("contingent") beneficiary.

The Function Result Overrides section shows any overrides you entered for specific plan components.

The Optional Forms section shows each of the optional forms of payment that is available to the participant. 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 information is printed for each form:

• Form: The form of 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: The factor used to convert the benefit to this optional form of payment.

• Type: The payment type. Each form in a form set has a different type of payment. For example, joint and survivor forms show both retiree amount and beneficiary amount. (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 retiree post-SSRA amount.

• Total (Unlimited), NonTax (Unlimited), Total (Limited), NonTax (Limited): Because qualified pension benefits are limited under the Internal Revenue Code Section 415, the report prints both the unlimited and limited amounts. The limited amount is the actual payable amount. The unlimited amount is informational only.

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

The Benefit Calculation section shows the normal and early retirement dates and all the benefit amounts that were calculated. This may include reduced and unreduced benefits, employee-paid and employer-paid benefits, grandfathered benefits, and any other benefits that your organization calculates.

For each benefit, the report prints the benefit amount, a description of the benefit, and a description of the normal form of payment, including any automatic spouse benefit. The amounts shown do not reflect reductions caused by applying Internal Revenue Code Section 415 limits.

The Service section shows all the service calculations for the participant. Depending on how you set up the calculation jobstream, there may be multiple service calculations for participation service, vesting service, and service credit.

The following information is printed for each service calculation:

• Description of the type of 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 date for the final period.

• Hours: The number of hours the worker has. This is zero for elapsed time service calculations.

• Breaks for Period: Whether the period counts toward breaks. This is 1 for break periods and 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 break rules 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 break rules are applied. This is informational only.

• Service Adjustment: The total adjustments applied to service during the period. Service is commonly adjusted when workers withdraw contributions and thus forfeit their previous service, when workers repay contributions to restore 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 or restoration.

The Final Average Earnings section shows all the final average earnings (FAE) calculations for the participant.

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

The following information is 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 the system 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 earnings are included.

The Vesting section shows the vesting percentage as of the event date.

The Age Adjustment Factors section shows any early or late retirement adjustments. This includes plan early and late retirement factors, and may include actuarial adjustments that are applied to 415 limits for early or late benefit commencement.

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

The Death Adjustment Factors section shows the reduction factor applied to a participant's benefit when the plan requires the participant to pay for coverage under the plan's preretirement survivor annuity offering. The report shows the final factor and the length of the coverage period.

The Covered Compensation section shows the participant's covered compensation: the average of the taxable wage bases for the 35 years up to and including the participant's social security normal retirement age. The amount is either a monthly or annual figure, depending on how you express covered compensation for your plan.

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

The Account Balances section prints information on cash balance accounts. It includes the final account balance as of the event date.

The report prints the following 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: Earnings for 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 Accounts section prints the final account balance as of the benefit commencement date.

The report prints the following information for each period:

• The start and stop date of the period.

• The interest earned on the 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 the current 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 after the current period amounts are added to the balance.

• Contribution rate, which is the percentage of earnings contributed.

• Interest for the period.

• Interest rate.

• Adjustments and interest adjustments for the period.

• Ending balance.

The Plan Eligibility section shows whether the participant was eligible as of the event date and provides a history of the participant's eligible and ineligible periods.

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

The Benefit Eligibility section shows each retirement type that is defined in the system and whether the participant is eligible or ineligible for that retirement type.

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

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

There are two components to the 415 limit:

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

The lesser of the above amounts is used as the final limit.

Historically, there was a third limit, which has been repealed. However, it still a limiting factor for calculations with certain historical benefit commencement dates. This combined fractional limit restricts the total amount a participant can receive from both defined benefit and defined contribution plans. The historical rule is that the sum of the "defined contribution fraction" (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 fractions are calculated according to rules that were laid out by the Internal Revenue Code.

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

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

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

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

The following fields are also printed:

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

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

• Reduction: The amount of the reduction.

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

• Order.

• Benefit Plan.

• Function result.

• Pmt amtl: The unlimited 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, and the annuity value shown is used only in the 415 limit calculation.

• User Reduction: The reduction amount.

• Proration Pct: The reduction factor.

This SQR provides detailed information about how the system calculates a participant's social security benefits:

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

• Adjusted Primary Insurance Amt: Includes both general increases and increases or reductions based on the assumed social security commencement date. This is normally considered the "actual" social security retirement benefit.

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

• NAW Indexing Year: The national average wage (NAW) indexing year. This is two years before 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 history that is used in determining social security.

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

• Birthdate: Determines the 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 report includes the following earnings information that is used for social security 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's actual earnings.

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

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

• Indexed Amount Used in Calc: The earnings amount used for a year that is included in the AIME computation period.

This SQR report describes the calculation in effect for a single plan as of a certain date.

This SQR report provides details of the trustee extract.

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-time payments.

• 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.

This report outlines a participant's optional form choices for a qualified pension plan. It uses the template named optform.doc.

This report outlines a participant's optional form choices for a nonqualified pension plan. It uses the template named optform2.doc.

This report provides a notice of minimum distribution for active employees reaching age 70 + who are 5% owners. It uses the template named mindislt.doc.

This report provides a form for employees to elect or waive the plan's qualified preretirement survivor annuity coverage. It uses the template named presurv.doc.

This report notifies retirees that benefits have been suspended because the retiree has been rehired. It uses the template named bensuspn.doc.

This report notifies participants that they are eligible to roll over their retirement plan distributions. It uses the template named rollover.doc.

This report provides a form for participants who want to roll over their retirement plan distributions. It uses the template named rollover2.doc.