System Demonstration Press Next to view entire demo NEXT Or click to advance to individual chapters: System Layout and Navigation Plan Level Screens Source Level Screens Employee Level Screens Reports

EMPLOYEE BENEFIT SYSTEMS, INC. Part 1: System Layout and Navigation

There are generally three ways to accomplish any task in the Pension System. The choice is yours!

Click on any screen name on the Folder View tree to go directly to that screen. 1. Folder View

2. List Bar Additional List Bars take you to Activities, Calculations,and Reports.

3. The Command line Just a few of the commands: File User-friendly Import/Export utility lets you build data handling templates. Instantly retrieve recently accessed plans.

Go takes you directly to screens

Hey, Hot Key fans: Did you notice our hot keys?

Besides letting you Calc the Plan, Calculations includes… Loan Amortization program & Rate of Return calculator

Choose from dozens of reports in the following categories: Proposals Valuation Discrimination Testing Participant Statements and more. Or use the optional Report Writer to create your own!

If you are at the Plan Level, the Search Tool helps you find a plan Search string Finds sponsor Pick a plan Pick a Plan Year In addition to these navigation methods, the Pension System has a Tool Bar to speed access to commonly used Functions.

If you are at the Employee Level, the Search Tool helps you find an employee

In the same way, the New Tool will help you add a new plan or a new employee.

The Calculator Tool lets you process any data entered and determine eligibility and vesting for each employee. It will also update the plan to the next period or year.

EMPLOYEE BENEFIT SYSTEMS, INC. Part 2: Plan Level Screens

The Defined Benefit System has three main levels. The Plans Level The Sources Level The Employees Level

Information for each Level is organized on screens accessed by horizontal tabs… with subcategories for each on vertical tabs.

We will start at the Plans level with the Plan/Sponsor – Plan/Trust screen We will start at the Plans level with the Plan/Sponsor – Plan/Trust screen

This screen has basic identifying information One of many drop- down boxes

Basic identifying information Roll cursor over fields for tool tips Or press the F1 key For detailed Help.

The Plan/Sponsor – Dates screen The Plan/Sponsor – Dates screen Most DB plans are processed annually, but if there are more frequent transactions, they must be set up here. Dates roll forward when the plan is calculated and Update To Next Period is selected. Tracks years in which Plan was Top Heavy, At Risk, and the 430(h)(2)(A) EIR

The Plan/Sponsor – Sponsor screen The Plan/Sponsor – Sponsor screen Note that you may attach multiple plans to the same Sponsor and the census data is shared by all plans under that sponsor.

The Provisions – Eligibility screen The Provisions – Eligibility screen Set up plan eligibility including: Computation period Included and excluded classes Determination of Years of Service The Advanced button offers full flexibility in defining eligible groups

The Provisions – Comp screen The Provisions – Comp screen Here you define the compensation period… and the component parts of comp that will be excluded.

The Provisions – Avg Comp screen The Provisions – Avg Comp screen Define Average Compensation and the period to which it applies. Note the Current Compensation option… useful for Accumulation Plans. Check exceptions to rule.

The Provisions – Limits/TH screen The Provisions – Limits/TH screen Defines annual dollar limits and adjustments for Top Heavy plans. Also includes exceptions for Cash Balance and nonqualified plans.

The Provisions – Vesting screen The Provisions – Vesting screen This is not for the vesting schedules! Well find them on the Sources Level. Here we have the requirements for vesting service and the exceptions resulting in immediate vesting… also forfeiture handling. NOTE: System uses separate definition for eligibility and for vesting.

The Provisions – Ret screen The Provisions – Ret screen Setting the criteria for Normal, Early and Postponed Retirement. Also defines the start date for Minimum Distributions.

The Assumptions – Pre-Ret screen The Assumptions – Pre-Ret screen This screen is used to enter pre-retirement assumptions for determining actuarial equivalent benefits under the plan as well as for funding and FAS reporting.

The Assumptions – Post-Ret screen The Assumptions – Post-Ret screen As with the pre-retirement assumptions, these are used for determining actuarial equivalent benefits under the plan as well as for funding and FAS reporting. The screen lets the user enter actuarial assumptions that pertain to the calculation of the individual monthly benefit at retirement. These assumptions will appear on the schedule of benefits. Normal form of payment with spousal Setback Check options allowed by the Plan and enter the probabilities of election at retirement.

The funding segment rates may be downloaded from DATAIRs website each month.

The Assumptions – 410b/401a4 screen The Assumptions – 410b/401a4 screen This screen sets the plan provisions for non-discrimination and coverage testing including combined plans and Cash Balance Plan testing.

The DB -- Min/Max screen The DB -- Min/Max screen The minimum required contribution and the maximum contribution levels as well as the development of the actuarial value of plan assets are developed and shown on this screen. The fields in gray are calculated by the system from input on Plan, Source, and Employee screens. If overridden they turn bright blue as shown above.

The DB -- Prefunding screen The DB -- Prefunding screen The data regarding the Carryover Balance and Prefunding Balance for the prior plan year. This information is used on the Form 5500 Schedule SB and will transfer directly to that schedule in DATAIRs Pension Reporter System.

The DB -- Shortfall screen The DB -- Shortfall screen Shortfall and Waiver amortization installments are entered into the grid. The system then calculates the current year amounts using the amortization factors.

The DB -- Contrib screen The DB -- Contrib screen This screen is the source of Schedule SB attachment data. Enter dates and amounts of current year contributions, carryover and pre-funding balances, plus unpaid contri- butions. Enter proposed date of deposit, and system will calculate pro- posed deposit.

The DB -- Shortfall screen The DB -- Shortfall screen The plan's AFTAP and FTAP percentages are calculated and displayed. Tool tips display the calculations and where the numbers are reported.

EMPLOYEE BENEFIT SYSTEMS, INC. Part 3: Source Level Screens

The DB -- Shortfall screen The DB -- Shortfall screen Shortfall and Waiver amortization installments are entered into the grid. The system then calculates the current year amounts using the amortization factors. A DB Plan will typically have one source type Defined Benefit. You may select additional types for rollovers, Cash Balance Plan hypothetical accounts, and mandatory employee contributions, etc.

The Eligibility -- Participation screen The Eligibility -- Participation screen The entry requirements to become a participant in this source. Entry date options Service crediting

The Vesting – Regular/Top Heavy screen The Vesting – Regular/Top Heavy screen Vesting schedules (regular and Top Heavy) are defined on this screen. As we already saw, the vesting service definitions and exclusions are defined at the Plans|Provisions|Vesting screen. and complete the schedule here If your plan had a prior vesting schedule, enter the date here…

The Benefit – Benefit Formula screen The Benefit – Benefit Formula screen Defines the Normal Retirement Benefit formula. This formula and the accrual method selected on the Accrued Benefit tab are used to calculate the accrued benefits under the plan. We think you will be impressed by the flexibility to design complex formulas Choose Graded for any class tiered formula. Define the formula for each class using the fields and operators below Choose Accumulation for Cash Balance Plan formulas

EMPLOYEE BENEFIT SYSTEMS, INC. Part 4: Employee Level Screens

The Census – Employee screen The Census – Employee screen The employee census information may be entered on this screen, or imported. Social Security Number and Employee Number are not required unless you import census data. Note that system will determine HCE status unless overridden.

The Census – Service screen The Census – Service screen Year of Service and hours worked for various purposes are calculated. Overrides may be entered. For participants receiving distributions, details of the payout schedule and amount may be entered.

The Census – Addr, etc. screen The Census – Addr, etc. screen Participant address and beneficiary information. code to identify family members for aggregation rules For RMD Calcs.

The Census – Edit screen The Census – Edit screen This screen is a powerful and friendly utility that lets you quickly create spreadsheet employee listings, data entry forms, and export files. Step 1. Use the Add button to move field definitions from Available to Selected. Step 2. Use the Up and Down buttons to position fields.

Instantly re-sort the listing by clicking on any column header Drag this bar to freeze columns to its left. Enter information for selected employees Export grid as either an Excel file or a.csv file

The system lets you input, import, and override payroll data in a variety of ways. Because the employee data is held at the Sponsor level, you only need to import once for multiple plans. The compensation definitions at the Plan level will automatically calculate the correct comp for each plan for testing and valuation purposes.

These Average Compensation figures are derived from the compensation history… …or which may be modified with overrides.

The Sources – Detail screen The Sources – Detail screen This screen provides a wealth of information on the current and projected accrued benefits that drive the Funding Target and Target Normal costs. Also contains distribution offsets and accrued benefit offsets, and the accrued benefit at Normal Retirement date for late retirees. The Actuarial Increase box displays the increase in benefit at Normal Retirement Date to get the benefit at Valuation Date. At the bottom of the screen is vesting information including a button to elect to use the Prior Year Vesting Schedule.

The Sources – DB screen The Sources – DB screen This screen displays the value of benefits for minimum funding and other purposes most notably the regular and at-risk Funding Target and Target Normal Cost. You can see how the probable Optional Form of Benefit for this employee determines these funding values.

The Testing – 410b/401a4 screen The Testing – 410b/401a4 screen The testing compensation, current year allocation, account balance, benefiting status and other pertinent data for testing can be viewed and edited here. Most of the fields on this screen are calculated based on information entered at the employee and plan level.

You will want to refer to both the Top-Heavy screen and… the 415 Limits screen to understand why any limitations have been imposed on the Sources – Detailed screen.

EMPLOYEE BENEFIT SYSTEMS, INC. Part 5: Reports

We will briefly describe how to access, modify, and print reports. The standard and custom reports are grouped into the seven vertical tabs on the left side of the Report Scheduler

Click the box to the left of each report title for one or more reports. Note that the DB- specific reports are grouped below the general reports in each category.

The tabs on the right side let you control the printing and appearance of the reports The Select tab lets you display or suppress certain information. Some reports let you select certain employees.

The Sort tab provides for multiple criteria and levels for sorting employees.

The Printer tab lets you further customize the report and then choose to print or save it as a.pdf or word processing file. Remember: you can Preview all reports before printing!

For more information about The Defined Benefit System call DATAIR at (888) or