Actives Basis: DeathCash
Return of Contributions
Select from the drop-down list what benefit to value as a Return of Contributions on Death in Service. The options are:
- Nothing
- Member’s Contributions
- Money Purchase Underpin
This is payable in addition to the other benefits specified for death in service.
Multiple
Enter the multiple of salary that is paid as a lump sum on death in service.
Of Salary
Select from the drop-down list the salary to use in the calculation of the Lump Sum on death in Service. All of the salaries previously specified on the Salaries Tab should be available.
Spreading Method Parameter Set
Spreading Method Parameter Set is a Scheme Global parameter which groups
the Prospective spreading method and date variables. This can be created
by using either the Create Globals function or using the Add/Edit
Spreading Dates button. Once created, these parameters can be edited
without going back into the Basis similar to other global parameter
sets.
Cash Spreading Method
If the benefits are not insured, this field is used to determine how the accrual of either a salary related or a prospective pension or cash benefit is spread. Select from the drop-down list which of the following options to use:
- FAS
- Projected Unit
For CC3 users the selection on the Death Pen Tab will be used for both pension and cash benefits paid on death.
The FAS option values the full prospective element whenever the member
is assumed to exit, then spreads this over the period from Spreading
Start Date to Spreading Finish
Date. For normal FAS values, Spreading Start
Date should be set to DJF and Spreading Finish Date to LDATE.
The Projected Unit option values the full prospective element for
those who exit within the control period only. For those who do not exit
during the control period, only the benefit based on accrued service is
valued. Spreading dates are ignored. For attained age valuations,
SuperVal values the full prospective element for all future exits, i.e.
the control period is infinite.
Not all options are available to all users.
Spreading Start Date
Pension Benefits
If the Spouse’s Death Benefit is not insured and is either based on Salary, Prospective Pension or Prospective Table then the user should select whether to accrue benefits using the PUC Method or the FAS Method in the Spreading Method.
If the FAS Method is chosen then select from the drop-down list the Spreading Start Date. The benefit will be assumed to accrue uniformly between the Spreading Start Date and the Spreading Finish Date and is split between past and future service on the same uniform basis.
If the pension is % of salary then the whole of the benefit is apportioned between past and future service liability.
For the Prospective Pension or the Prospective Table it is the prospective element only that is spread. (The pension from service prior to the valuation date will be valued as past service. The pension from service between the valuation date and the point of exit will be future service liability. The pension from service between point of exit and NRD is spread between the dates entered.)
The past service liability will be equal to:
The future service liability will be equal to:
where:
- SSD = Spreading Start Date
- SFD = Spreading Finish Date
- VDATE = Valuation Date
Lump Sum Benefits
If the Lump Sum on Death Benefit is not insured and is a multiple of Salary then the user should select whether to accrue benefits using the PUC Method or the FAS Method in the Spreading Method.
All of the benefit will be assumed to accrue uniformly between the Spreading Start Date and the Spreading Finish Date and is split between past and future service on the same uniform basis.
The past service liability will be equal to:
The future service liability will be equal to:
where:
- SSD = Spreading Start Date
- SFD = Spreading Finish Date
- VDATE = Valuation Date
Not all options are available to all users.
Spreading Finish Date
Pension Benefits
If the Spouse’s Death Benefit is not insured and is either based on Salary, Prospective Pension or Prospective Table then the user should select whether to accrue benefits using the PUC Method or the FAS Method in the Spreading Method.
If the FAS Method is chosen then select from the drop-down list the Spreading Start Date. The benefit will be assumed to accrue uniformly between the Spreading Start Date and the Spreading Finish Date and is split between past and future service on the same uniform basis.
If the pension is % of salary then the whole of the benefit is apportioned between past and future service liability.
For the Prospective Pension or the Prospective Table it is the prospective element only that is spread. (The pension from service prior to the valuation date will be valued as past service. The pension from service between the valuation date and the point of exit will be future service liability. The pension from service between point of exit and NRD is spread between the dates entered.)
The past service liability will be equal to:
The future service liability will be equal to:
where:
- SSD = Spreading Start Date
- SFD = Spreading Finish Date
- VDATE = Valuation Date
Lump Sum Benefits
If the Lump Sum on Death Benefit is not insured and is a multiple of Salary then the user should select whether to accrue benefits using the PUC Method or the FAS Method in the Spreading Method.
If the FAS Method is chosen then select from the drop-down list the Spreading Start Date. All of the benefit will be assumed to accrue uniformly between the Spreading Start Date and the Spreading Finish Date and is split between past and future service on the same uniform basis.
The past service liability will be equal to:
The future service liability will be equal to:
where:
- SSD = Spreading Start Date
- SFD = Spreading Finish Date
- VDATE = Valuation Date
Note: Not all options are available to all users.
Lump Sum Insured
Check this box if the liability for the Lump Sum on Death in Service is insured with an insurance company. Leave this box unchecked if the liability for the Lump Sum on Death in Service is paid from the pension fund.
If checked, then Death Insured Costing Tables become available where you can specify premium rate tables for SuperVal to calculate the first years insured premium cost for this benefit.
If unchecked, define how to spread the liability.
Male Costing Table
Female Costing Table
If the Lump Sum Death Benefit is insured, then double click to select the table that represents the cost of the Lump Sum benefit per thousand pounds sum assured.
SuperVal will calculate the first years insured premium cost for this benefit.
Related
Decr Help
Rate tables can be selected by any of the following methods:
- Right-click on the field for a list of appropriate Rate Tables. For a field that will accept more than one type of Rate Table (e.g. Miscellaneous Tables), the list will be restricted to the current Table Type specified in the field – if you wish to see all allowable Rate Tables, delete the Table Type from the field before clicking; or
- Double Clicking on the field will produce the Rate Tables form where Rate Tables can be viewed (numerically and graphically) and Rate Tables can be added or edited. A Rate Table can be selected by pressing the Select button or double clicking on the Rate Table description in the tree; or
- the list of allowable Rate Tables can be scrolled through by
pressing the
<or>keys. The description of the Rate Table to the right of the field will change as each new Table is selected.
Male Rate Loading
Female Rate Loading
If the cost of insuring a particular group of people (i.e. those in hazardous occupations) is higher a loading to the standard rates can be made. Enter the amount of the loading here. The loading should be input as a percentage i.e. to increase the rates by 20% enter a loading of 120%. For no adjustment enter a 100%.
Note, the insured costing for the Lump Sum on Death in Service will be
costed per £1,000 per annum. Therefore, if this has not already been
taken account of in the premium rates (i.e. your premium rates are
simply qx) you will need a rate loading of 100 × 1000 % = 100,000%.
Male Rate Addition
Female Rate Addition
This field allows an addition of a flat amount to the rate at each age to be made. Thus increasing the insured cost of this benefit. Enter the addition here.
The addition will be in terms of per hundred pounds of lump sum assured.
Male Averaging Period
Female Averaging Period
Specify the averaging period in years, for the Lump Sum on Death in Service insured premium.
An entry for averaging period may be necessary if some smoothing of the insured premium rates is required.
Linearly Interpolate Costing Tables for mid-point Exit values
When checked, the system will linearly interpolate factors for mid year exits such as early retirements and deaths. For Normal Retirements, the system will apply no interpolation. If unchecked, the system will use the factor specified at the age nearest rounded down for mid year exits as previous versions have done.
Add/Edit Spreading Dates
Add or Edit any Spreading Date parameter sets.
SaveAs
Click the Save As button to save with a new file name.
Save
Clicking on the Save button allows you to save the entries.
Quit
Clicking on the Quit button allows you to exit without saving any of your changes.
In some of the screens you will be asked to confirm if you want to exit Ignoring all changes. If you click Yes, the file will be closed without saving any changes. If you click No you will be returned to your original screen.
From the Browser, the Quit button will take you to a graphical display of the results.