Updated for EGTRRA!

 DATAIR’s Defined Benefit System is designed to administer eligibility, discrimination testing, proposals, cost, contributions, changes, updates, valuation, payouts, 
additional discrimination testing under 401(a)(4), 401(l), 410(b), etc.

Forms of Business:

• Corporations - Regular and Sub-Chapter
• Sole Proprietors/Partners - System automatically calculates net income for owner-employees

Eligibility and Participation Provisions:

• System determines employees eligible to participate based on:
  • Minimum Hours
  • Minimum and Maximum Age
  • Months of Service parameters
    
• Participation Dates based on:
  • Single Entry (Daily, monthly, quarterly, anniversary date nearest or following)
  • Dual Entry (first day of plan year and six months later, or user defined dates)

Retirement Provisions:

• Participants can retire upon Attainment of, or The First Day of Month Following, or Anniversary Date Nearest or Following Attainment of Normal Retirement Age, with Minimum Years of Service and/or Participation, or not to exceed a Maximum Age with Minimum Years of Participation
• Provisions for Early Retirement based on Age, Years of Service or Participation
• Provisions for Maximum Retirement Age based on Age only, or Age and Min. Participation

Benefit Formulae

• Fixed
• Integrated (Step Rate)
• Offset
• Unit Benefit
• Unit Benefit Offset
• Unit Benefit Step Rate
• Unit Benefit X Soc. Sec.
• Unit Benefit X Past/Future SVC
• Unit Benefit Integrated
• Dollar Amount Times Years of Service/Participation
• Option to input a Dollar amount for system to generate formula
• Automatic adjustment for Rev. Rul. 71-446 for Form of Payment, Pre-Retirement Death Benefit, Retirement Age Prior to Age 65, ERISA De-Minimus Benefit, and Years of Service
• Automatic adjustment of 415 limits for Form of Payment and Retirement Ages Prior to Age 62 or After 65
• All Covered Compensation tables (I and II) from 1967 to present
• Limits on minimum, maximum and increase in benefits
• Automatic application of top-heavy minimum; for funding and benefit accrual (Code section 416)

Employee Mandatory Contributions

Participant contributions based on a percent of compensation or on an integrated formula, limited to a percent of compensation or dollar amount.

Actuarial Cost Methods

• Individual Aggregate - With four options of asset allocation based on:
• Present Value of Benefits
• Entry Age Accrued Liability
• Accrued Liability Based on Prior Year’s Monthly Benefit and Normal Cost
• Prior Year’s Allocated Assets Plus Normal Cost
• Aggregate - Traditional (payroll weighted)
• Aggregate - Modified (normal cost weighted)
• Frozen Initial Liability - Aggregate
• Frozen Initial Liability - Individual Entry Age Normal
• System keeps track of amortization bases
• Calculation of unfunded liability for 404 and 412
• Unit Credit Service Pro Rata - With option to use service or participation, and to limit funding years to accommodate for 10 Year Funding
• All cost methods can be used for take-over plans
• Input of assets, credit balance/deficiency
• Addresses 404 and 412 limitations
• Calculation of Full Funding Limitation for 404 and 412 purposes as well as Full Funding Credit
• Calculation of Present Value of Accrued Benefits for Terminees
• Calculation of Deferred Vested Benefits
• Calculation of Present Value of Benefits for Retirees

Funding Standard Account

• Capability to input dates and amounts of contributions for the development of the Funding Standard Account
• Daily interest crediting of contributions from date of deposit to end of year
• Option to charge/credit interest on Insurance premiums
• Adjustments of Insurance premiums by dividends for FSA purpose

Accrued Benefits

• Pro-rata calculation of accrued benefit based on service, participation
• Automatic calculation of TEFRA minimum benefit accruals
• Option for separate accrual of benefits for key and non-key employees
• Separate actuarial assumptions for calculating Present Value of Accrued Benefits than those used for funding
• Calculation of accrued benefits attributable to participant required contributions

Pre-Retirement Actuarial Assumptions

• Availability of separate salary averaging for funding and for benefit accrual
• Salary averaging based on high only, high consecutive with exclusion periods
• Interest
• Mortality Tables with separate setback/setforwards for males and females
• Turnover/Withdrawal
• Salary Projection
• Calculation of PIA amounts based on PRE and POST 1979 Social Security rules
• PIA amounts calculated using separate assumptions for backward and forward salary projection, Consumer Price Index, average earnings, and Covered Compensation table projections

Post Retirement Actuarial Assumptions

• Separate assumptions for actuarial equivalence than those used for funding
• Accommodates Forms of Payment for:
  • Life Only
  • Years Certain
  • Years Certain and Life
  • Joint and Survivor
  • Insurance Settlement Option Tables
  • Special Routines grading settlement option tables between current & guaranteed rates
• PVAB based on option of actuarial assumptions, annuity rates or PBGC Rate Sets
• Interest
• Mortality Tables with separate setback/setforwards for males and females
• Loading for Expenses
• Cost of Living Adjustment
• Loading for Ancillary Benefits
• Option to fund TEFRA minimum benefit on Life Only basis

Pre-Retirement Death Benefits

• Over 20 definitions for pre-retirement death benefit, incorporating PVB, PVAB, PVVAB, Face Amount, Benefit Multiples, Cash Values and combinations thereof
• Insurance Face Amount calculation using death benefit multiple of total monthly benefit or excess only benefit
• Face Amount calculation utilizing Rev. Rul. 74-307
• Minimums and maximums for insurance ages and amounts
• Complete handling of Universal Life utilizing three (3) One-Year Term Cost approaches or specific insurance companies Cost of Insurance rates
• Handles Whole Life, Term, Adjustable Life, or Interest Sensitive products
• Illustration of dividends, waiver of premium and modal routines
• Calculation of reportable income based on PS-58 or ART rates

Vesting

• 100% after 10 years
• 5-15 Rule
• Rule of 45
• V% per year
• 0% for N years, 100% thereafter:
  • 2-20
  • 4-40
  • Modified 4-40
• 100% full and immediate
• Graded Schedule (customize your own)
• Service for vesting based on either plan participation or service with the employer, but with options to exclude service prior to original effective date or prior to a certain age
• Number of hours required to accrue a year for vesting

Dates

• Original Effective Date
• Plan Anniversary
• Eligibility
• Plan Year-End
• Limitation Year
• Valuation Date for Beginning-of-Year or End-of-Year valuations

Participant Data

• Minimum required data for proposals: Name, Sex, Date of Birth, Date of Employment, Compensation Mode and Amount
• Key/Non-Key indicator for top-heavy test
• Over 200 additional employee data items
• Up to 45 years of salary history
• Complete Insurance policy history
• Capability to override, when necessary, nearly all system-calculated values
• Overrides of insurance rates and values

Reports

• Title Page
• Age/Service/Salary Statistics
• Plan Specifications
• Emerging Liabilities
• Employee Census
• Funding Standard Account
• Schedule of Benefits
• Summary of Contribution Requirements
• Analysis of Cost
• Development of Actuarial Gain/Loss
• Valuation Statement
• Employee Notes
• Financial Results/Tax Summary
• Insurance Policy Values
• Multiple Plan Limitations
• Policy Increases and Additions
• FASB 132 Information
• Schedule of Retireds & Deferred Vesteds
• Top Heavy Analysis
• Reportable Income
• 70% - 80% Test
• 81-202 Comparability Tests
• 1099-R
• Actuarial Valuation Reports
• Development of Normal Cost
• Participant Statements (Multiple formats)
• Full Funding Limitation
• Anniversary Notification (Participants & New EEs)
• Accumulated Funding Deficiency
• Pending File Worksheets (Plan & Participant level)
• Required Contribution
• Master File (Plan & Participant level)
• Actuarial Values
• Development of Unfunded Liability
• FIL Bases Amortization

Additional Print Options

• Ability to select specific page(s) or all reports:
• Two-line, changeable customized footnote on all reports
• Six-line, changeable customized footnote on all Participant Statements
• Customized "Employee Note" to serve as reminder for future action
• Options to include/exclude items on Participant Statements for:
  • Name of Preparer
  • Pre-retirement death benefit
  • Participant salary
• Option for Sub-Totals based on optional Employer Code (division/subsidiary/location, etc.)
• Employee primary and secondary sorting capability based on any two data elements
• Summary Results on screen enable the user to view results prior to printing

Additional System Features

• User-customized "Defaults" (pre-selected plan specifications) minimize data entry
• Menus provide user-friendliness without locking you into their sequences
• On-screen field explanations display automatically in reverse video
• Input and data fields are logically grouped together
• Cursor moves automatically to fields in error or still requiring entries
• "Pg Up" and "Pg Dn" keys permit rapid review of screens already passed
• Special-purpose screens speed up updating of participant data
• True "Batching" of several cases to run and print one after the other
• Capability to copy and rename a plan allows the user to quickly create unlimited variations of the same plan
• Understandable system messages provide progress status during program execution
• Pending File/Master File concept provides added flexibility and file security

• Plan Directory lets you know what plans are on disk
• "PLANS" command produces hard copy listing of key information about all cases on disk
• Configuration program easily adapts the system for another computer or printer
• Table Editor permits viewing, printing, modifying and building of specific pension tables:
  • Mortality
  • Turnover
  • Settlement option rates
  • ART/PS58 rates

• Special system utilities provide for customized generation of:
  • Commutation Factors
  • Annuity Table
  • Loan Amortization Schedules

Recommended minimum hardware configuration:

• Pentium 133 MHz; 16MB or more of RAM; 3.5" floppy disk drive; CD-ROM drive; 1 GB or more hard disk; HP LaserJet or compatible printer; Windows 95 or above required for some features.
• Compatible with numerous networks, e.g., Microsoft Networking, Novel Netware, Artisoft LANtastic, etc.