If a valuation function includes an estimate of wage income, for example, this value could be

multiplied by the Wage Index adjustment factor to get the specified currency year. For

example, in valuing workloss days, the U.S. setup uses a function like the following:

DailyWage*WageIndex, where the DailyWage is specified in year 2000 dollars. The

WageIndex scales this DailyWage value up or down depending on the currency year you have

chosen. (The choice of currency year can be made with the One-Step Setup, discussed here,

and with the Advanced button when creating an APV file, discussed here.) If the currency year

is 2000, then the WageIndex has a value of 1 and no change is made to the DailyWage. If the

currency year is specified to, say, 2005, then the WageIndex will have a value greater than 1

because of the inflation that has occurred between 2000 and 2005.

To add inflation data to BenMAP, click on the Edit button below the Inflation DataSets box in

the Manage Setups window. The Inflation DataSet Manager window will appear. In this

window you may Add, Edit, and Delete datasets. The section on the left under Available

DataSets lists the inflation datasets that are currently in the setup database. The section on the

right presents the inflation factors in a selected dataset.

 

 

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