Actives Basis: IHPension
Male Benefit Basis
Female Benefit Basis
Select from the drop-down list how the ill-health pension is calculated. The options are:
- None
- Accrued Pension
- Prospective Pension
- Prospective Table
Additional fields will be required based on the option selected. The benefits under the Accrued Pension, Prospective Pension and Prospective Table will be based on those described on the Slices.
Not all options are available to all users.
Male Future Service Fraction
Female Future Service Fraction
This is used where the Ill health Benefit Basis is a Prospective Pension.
If the prospective service is to count in full then this field should be set to 100%. If prospective service only counts at half rate then this field should be set to 50%.
More information on how the cost of the prospective element is accrued is found in the Spreading Method and Spreading Dates.
Male Reduction Factors
Female Reduction Factors
This field allows the user to specify a set of early retirement reduction factors that apply to ill health pension benefits. Typically, where these are unreduced the factors would be 1 at all ages. Double click to select from the list of available tables.
If the field is left blank then SuperVal will assume 1 at all ages.
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.
Linearly Interpolate Reduction Factors 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.
Male Augmentation Table
Female Augmentation Table
An entry is required in this field if you have chosen Prospective
Table in either the Ill health Pension Benefit
Basis or the Death in Service Pension
Benefit Basis. (Separate fields are available
for each of these benefits.)
Double click for a list of the available tables.
Related
Start Date for Augmentation Table
This field is required if either the males or females Ill Health Pension Benefit Basis or the Death in Service Pension Benefit Basis is based on a Prospective Table. Select from the drop-down list the data item to use as the date from which the benefits are augmented. (Separate fields are available for each of these benefits.)
Male Pension Extra Prospective Service
Female Pension Extra Prospective Service
This field is used to increase the amount of prospective service used in
the calculation of either the ill health pension or the death in service
pension. (Separate fields are available for each of these benefits.) It
might be used where normal retirement age has been reduced post-Barber,
but the spouse’s ill health pension or death in service pension is still
based on prospective service to the member’s original normal retirement
age. Enter the number of years (and part years) additional service that
should be included. For 5 years and 6 months enter 5.5.
Apply Reduction Factor to Spouse's
Check this box if the spouse’s pension payable on ill health retirement should include the ill-health reduction factor tables specified. Leave this box unchecked if the spouse’s pension is unreduced.
Spouse's Based on Pre Commutation Pens
Check this box if the spouse’s pension payable on ill health retirement should be based on the member’s pre-commutation pension. Leave this box unchecked if the spouse’s pension is based on the post-commutation pension.
Maximum Service
Maximum Service Table
Enter the maximum number of year’s service that can count towards augmented ill-health pension benefits or augmented death in service pension benefits. (A separate field is available for each benefit.)
To use a Service Maximum Table, leave the Maximum Service field blank
and the Maximum Service Table field will come available. Double click
for a list of available tables.
The service maximum specified for ill-health will also apply where the
Retirement Cash Option is set to Accrual × Salary for each year for a
retirement due to ill-health.
Some fields are only available to some users.
CARE Ill-Health Enhancement Method
Select from the drop-down list how to value the CARE Prospective benefit on Death in Service or Ill-health. The options are:
- Accrued CARE Pension
- Current Salary
The following example sets out how the benefit will be calculated under each of these options. Consider a member with a 1/50th CARE scheme who has a pension of £4,000 which was accrued over ten years. His current pay is £25,000 pa. On either death or ill-health retirement he will receive an additional 20 years of service.
Under the Accrued Care Method his death/ill-health pension will be calculated as
Under the Current Salary Method his death/ill-health pension will be calculated as
Some fields are only available to some users.
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.
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.
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.