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PV Tools and Utilities Update Version 2022.2

12/22/2021

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EAC PV Tools was updated for the following mortality tables announced by the PBGC on 11/23/2021:

ERISA Section 4044 Mortality Table for 2022 Valuation Dates -- This mortality table is used to determine the present value of annuities in involuntary terminations and distress terminations of single-employer plans, as discussed in 29 CFR 4044. Click here for more information.
2022 ERISA Section 4050 (Missing Participants) Mortality Table -- This mortality table is used as part of the "missing participant annuity assumptions" as discussed in 29 CFR 4050. Click here for more information.
Note that these tables are all calculated "on demand" by the add-in, based on basic principles, hence the tables are already available (assuming no change in PBGC methodology).

EAC Utilities was updated:

Added present value of the maximum PBGC guaranteed benefit under IRC Section 436(d)(3)(A)(ii) and ERISA Section 206(g)(3)(C)(i)(II). Click here for more information
-- Added a new function PVPBGCMax to return the present value of the maximum PBGC guaranteed benefit.
-- Added a new sheet "Present Value of PBGC Maximum Guarantee" that matches the PBGC published table here.

Uninstall capability was added for both add-ins.

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EAC Utilities Update Version 2022.1

11/2/2021

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EAC Utilities (version 2022.1) was updated for the September 2021 consumer price index (CPI-W and CPI-U).

CPI-W: A 5.9% Social Security cost-of-living adjustment (COLA) will begin with benefits paid in January 2022. The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as determined by the Bureau of Labor Statistics. The COLA is calculated by comparing consumer prices in July, August and September with prices in the same three months from the previous year.

Some other changes that take effect in January 2022 are based on the increase in average wages. The "national average wage index" for 2020 is $55,628.60. The index is 2.83% higher than the index for 2019. Based on that increase, the wage base (the "contribution and benefit base"), will increase to $147,000 for 2022 from $142,800 for 2021. New "bend points" in the Social Security PIA formula were also announced.
CPI-U: A 5.34% cost-of-living adjustment was announced by the Bureau of Labor Statistics based on the Consumer Price Index - All Urban Consumers (CPI-U). The COLA is calculated by comparing consumer prices in July, August and September with prices in the same three months from the previous year. This is used by the Internal Revenue Service for cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020. The IRS has not yet announced values for 2022 or published any tables, so these results are estimated values (we are pretty sure we have it right). When the 2022 numbers are officially published, another update will be issued.
Note that EAC Utilities will automatically update for a new year by simply downloading the CPI rates for September in the "Special" menu.

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EAC PV Tools Update Version 2022.1

11/2/2021

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Added mortality improvement scale MP-2021 announced by Society of Actuaries.
Updated mortality table "LS2023" to use MP-2021. Note that IRS mortality tables for years 2023 and later are not available yet. The results produced using "LS2023" are based on the methodology in effect for 2022, (using mortality improvement MP-2021 announced by the SOA on 10/20/2021) per IRS Notice 2020-85 on December 14, 2020. Another update will be issued when the IRS announces the 2023 static mortality tables.
Added new shortcut functions: PVSL12, PVJL12, EIRSL12. These are the same as the regular functions PVSL, PVJL, EIRSL with the following simplifying parameters:
* Frequency = 12 (monthly)
* COLA = 0 (no COLA)
* CalculationMethod = 1 (exact method)
* NoPreRetMort = 0 (use pre-retirement mortality)
* AnnTiming = 0 (beginning of month)
Fixed an issue with the right-click pop-up menu.
Added "Audit" to the right-click pop-up menu.
In the PVJL function, when using "years certain option" = 1, and "years certain" > 0, and calculation method = 0, 8, 9; fixed a bug where the function returned only the present value of the certain period, and not the deferred portion of the annuity.
Minor fix for a strange Windows/Excel issue that was reported by a new user, causing Excel to fail to open.

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Minor Update

2/5/2021

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Utilities version 2021.4 -- Added PBGC Retirement Rate Category Tables 2021.
PV Tools version 2021.5 -- Minor update.

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Updates

1/22/2021

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Utilities version 2021.3 was updated to include the 2021 Covered Compensation table published in IRS Rev. Rul. 2021-3.
PV Tools version 2021.4 was updated with some minor bug fixes:
- in the mortality table pop-up screen.
- in the PVJL audit, under certain set of parameters.
- in the PVJL function, when using calculation method 1 or 2, and when using generational mortality improvement ("/gen" option). Note that this does not affect calculation method 0, 8, or 9, or any other mortality table.

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EAC PV Tools Update Version 2021.2

12/29/2020

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Added IRS static mortality tables for 2022 per IRS Notice 2020-85. A good summary is here.

The 417(e) table for lump sum calculations is "LS2022".

Added IRS RMD tables effective 1/1/2022. The IRS issued new mortality tables for required minimum distributions:

EAC PV Tools was updated for the new tables.
Federal Register: Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions
Publication 590-B (2019), Distributions from Individual Retirement Arrangements (IRAs)

Fixed some bugs:

Fixed the mortality improvement scale MI-2017 published by the Canadian Institute of Actuaries.
Fixed some bugs in the "Audit" feature.
Fixed the missing button for "Other" in the mortality table pop-up form.

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EAC d.b.a Endres Actuarial Computing

11/17/2020

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Endres Actuarial Consulting LLC is now doing business as Endres Actuarial Computing. We adopted this assumed name to better reflect the nature of the business as a software development company rather than a consulting firm.

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Updates for PV Tools and Utilities

11/10/2020

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Updates for both add-ins were posted today. This was to fix a few minor bugs, nothing significant to report.

PV Tools version 2020.7
Utilities version 2021.2

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EAC PV Tools Update Version 2020.6

11/2/2020

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EAC PV Tools was updated in version 2020.6 for:

Added MP-2020 mortality improvement scale announced by Society of Actuaries.
Added the ability to use "forward rates" for the interest definition in all functions.
Squished some minor bugs.

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EAC Utilities Update Version 2021.1

11/2/2020

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EAC Utilities (version 2021.1) was updated for the September 2020 consumer price index (CPI-W and CPI-U). A good summary is here.

CPI-W: A 1.3% Social Security cost-of-living adjustment (COLA) will begin with benefits paid in January 2021. The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as determined by the Bureau of Labor Statistics. The COLA is calculated by comparing consumer prices in July, August and September with prices in the same three months from the previous year.

Some other changes that take effect in January 2021 are based on the increase in average wages. The "national average wage index" for 2019 is $54,099.99. The index is 3.7% higher than the index for 2018. Based on that increase, the wage base (the "contribution and benefit base"), will increase to $137,700 for 2021 from $142,800. New "bend points" in the Social Security PIA formula were also announced.

CPI-U: A 1.22% cost-of-living adjustment was announced by the Bureau of Labor Statistics based on the Consumer Price Index - All Urban Consumers (CPI-U). The COLA is calculated by comparing consumer prices in July, August and September with prices in the same three months from the previous year. This is used by the Internal Revenue Service for cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020. The IRS has not yet announced values for 2021 or published any tables, but I am certain that I have it right. When the 2021 numbers are officially published, I will double check to make sure everything matches.

Note that EAC Utilities will automatically update for a new year by simply downloading the CPI rates for September.

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