Actuarial Tools, Advanced Processes
Defined Benefit (DB) pension plans are like ocean tides; when the water goes down in one part of the world it is rising somewhere else. While some countries have seen a sharp decline in DB plan participation in recent years, in other parts of the world DB plans are preferred by workers. In both cases, accurate administration is required to take care of the plan members. PX3000tm/DB gives administrators the power to get the job done right.
One notable area of inefficiency in DB administration is the performing of pension calculations upon the termination, retirement, or death of a plan member. Many administrators outsource these calculations to an actuary, which drives up the average annual administration cost per plan member. PX3000tm/DB reduces these administration costs because the pension plan administration software performs these vital calculations.
With PX3000tm/DB, an administrator can set up and track any number of pension plan members for multiple employers in multiple divisions and locations and with any number of special benefit provisions, classes, and grand-fathered benefits. PX3000tm/DB was built to take into account the fact that every DB pension plan is unique, so the system is rules-based and parameterized for fast configuration and utilizes a nimble architecture to enable cost-effective customization.
PX3000tm takes care of the whole bottle of wax, from plan set-up to member enrolment to production of membership certificates to all calculations and reports.
The software also includes modeling tools for “what if” pension computations. PX3000tm/DB guides the administrator through the entire administration process, such as communicating with the plan members at key moments, producing member statements and legislated reports, and even providing settlement instructions for the trust company.
The DB algorithms developed by Penad since 1983 have been used to administer hundreds of DB pension plans. PX3000tm is much more than “just software”, it is a proven methodology for administration success, developed by Penad’s team of DB specialists.