Summary Process

(A) Plan Specifications – Top If you have an existing ftw plan document, Plan Specifications will populate automatically into DB Compliance when you create the first plan year. If there is no ftw plan document, you can enter Plan Specifications directly into DB Compliance. Plan doc - must be CB or DB type, either PPA or Cycle 3 version (B) "Conversion Year" - Top This is the year prior to the “Replication Year” where participant data is uploaded at year-end using predefined conversion file layouts, including service to-date, compensation history, and account balances or accrued benefits. This is a data process only and liabilities will not be calculated. Create conversion year where the conversion date will be last day of that plan year Upload conversion data using the standard conversion grid Upload compensation history for additional years prior to the conversion year Run conversion year Scrub and review the Eligibility Status report (C) "Replication Year" (for valuation replication purposes) - Top For an EOY valuation, census data at year-end is uploaded in the year after the Conversion Year, and for a BOY valuation, no census data is uploaded because the Conversion Year data is used. Valuation assumptions matching the previously completed valuation are used to run a limited process to replicate funding liabilities. No valuation or compliance test processing is necessary. Add replication year For a BOY valuation, update valuation date to "First Day of Plan Year" Enter actuarial assumptions to match the previously completed valuation Update Census data for an EOY valuation (not necessary for a BOY valuation), and be sure to add Group codes for plans that use Group formula definitions Run Scrub and Benefits & Liabilities tasks (only the first Scrub & B&L #1 for a BOY valuation) Review the Eligibility Status report and replication liabilities in the Valuation Results report (see trouble-shooting tips in Step 11 below to help resolve issues) Skip running Plan Costs task, but add credit balance overrides (see details in Step 11 under the Plan Costs task sub-heading - these will be used in the following year's valuation) For a BOY valuation after B&L #1 is final, lock the valuation in the Plan Costs task, then update for current year census and run the year-end Scrub #2 and B&L #2 (this prepares for next year's BOY valuation) Skip running compliance test tasks (though it will not harm anything) (D) "First Processing Year" - Top The ftw system will run a full valuation and set of compliance tests for the first time in the year after the Replication Year. Besides uploading new participant census data for the year, plan-level information is needed (e.g., assets, contributions, other trust transactions, amortization bases). Add next plan year Run all tasks Startup plan addendum Return to Top Note: Follow additional purple-colored notes throughout this document. (A) Plan Specifications - Top Same as above. (B) "Conversion Year" – Top This is the year prior to the "First Processing Year" even if it is before the plan's effective date. It is necessary to establish data the day before the first plan year because calculations for a plan year include determinations at both the beginning and end of the year, even if doing an EOY valuation. (C) "Replication Year" - Top N/A (D) "First Processing Year" - Top Since there is no Replication Year, the ftw system will run a full valuation and set of year-end tasks & compliance tests.