Actives Basis: IndSlices

Slice Description

Up to 16 separate Benefit Slices can be specified. Slice 1 will always be used to describe future service. Slices 2 to 16 are used to describe past service.

Enter a description for the Benefit Slice being valued eg Pre Barber Benefit.

This description will appear on the results output.

The Alt Slices Tab will only be available if you have selected an option other than Ignore in the Alternate Slices Method field on the Main Tab.

The Ind Slices Tab will only be available if you have checked the box for Independent Slices on the Main Tab.

Start Date [Data Item]

Earliest Start Date [Fixed Date]

The Service Start Date for each Slice is entered here. Select from the drop-down list the data item containing the relevant data item. This will be used as the date when service for this Slice starts accruing unless an Earliest Start Date is also defined.

The user can define the Earliest Start Date that can be used for a particular Slice. Enter this date in the following date format DD/MM/CCYY. SuperVal will then take the later of these two dates to determine when service for this Slice starts accruing.

If valuing future service, the Service Start Date on Slice 1 should be Valuation Date and the Earliest Start Date should be blank. If you have no future service liabilities, please ensure these fields are left blank on Slice 1.

If the Slice is being used to value added years or a fixed pension then these field can be left blank.

The Earliest Start Date will not be used for future service benefits on Slice 1 when CARE benefits are being valued.

Finish Date [Data Item]

Latest Finish Date [Fixed Date]

The Service Finish Date for each slice is entered here. Select from the drop-down list the data item containing the relevant data item. This will be used as the date when service for this Slice stops accruing unless a Latest Finish Date is also defined.

The user can define the Latest Finish Date that can be used for a particular Slice. Enter this date in the following date format DD/MM/CCYY. SuperVal will then take the earlier of these two dates to determine when service for this Slice stops accruing.

If valuing future service, the Service Finish Date on Slice 1 will always be Leaving Date. The Latest Finish Date could be used to cease accrual at a fixed date in the future. If you have no future service liabilities, please ensure these fields are left blank on Slice 1. The Latest Finish Date will not be used for future service benefits on Slice 1 when CARE benefits are being valued.

If the Slice is being used to value added years or a fixed pension then these field can be left blank.

The Latest Finish Date on the Offset Slice must be specified as this is used to identify the date at which GMPs stopped accruing, for some Cash Commutation or death in deferment options.

Service Rounding Override

The Company Service and Scheme Membership used by SuperVal can be rounded in a number of different ways. Select from the drop-down list one of the following options:

Exact Days
Months Rounded Down
Nearer Months
Months Rounded Up
Years Rounded Down
Nearer Years
Years Rounded Up
Complete Tax Years

The entry on the Membership Tab will be used unless an Override is specified on a particular Slice. Note, service is rounded on a Slice by Slice basis and there is no rounding for total service.

Added Years

This field is used to define the number of Added Years either where these are fixed for all members or a member specific amount. To enable it ensure the Start Date for this slice is blank. Added Years might have arisen from an Augmentation exercise or a Transfer-In to the scheme.

If the number of Added Years granted is the same for all members, enter the number of years granted in years (and part) years i.e. for 5 years and 6 months enter 5.5.

If the number of years varies per member, then select from the drop-down list the data item containing the appropriate data. The data item should contain the number of complete (and part) years granted to each member.

Male Payment Start Age

Female Payment Start Age

When valuing Independent Slices, the user can choose a start age for the payment of the benefit.

To value a cash benefit, the Payment Start Age should be equal to the Payment End Age.

Male Payment End Age

Female Payment End Age

When valuing Independent Slices, the user can choose a end age for the payment of the benefit.

To value a cash benefit, the Payment Start Age should be equal to the Payment End Age.

Revaluation in Deferment

This is the rate at which the benefits from this Slice will increases in deferment i.e. between date of leaving active service and NRA.

Select from the drop-down list which of the 3 revaluation rates previously defined should be used. The options are:

Rate 1
Rate 2
Rate 3

The rate entered will be applied to all types of benefit entered ie normal accrual, added years and a pension data item.

The values of these three deferred revaluation rates are entered on the Financial Tab.

Pension Increases in Payment

Once in payment, the pension from this Slice or PUP, can be set to increase at one of four different increase rates. Select from the drop-down list the appropriate rate. The options are:

Main Pension
Special Pension
Pension Increase 3
Pension Increase 4

Pension Increases Pre Start

This field is used to set a pension increase that will apply from the date the member retires (where this is before Payment Start Age) and the Payment Start Age. Select from the drop-down list the appropriate rate. The options are:

Main Pension
Special Pension
Pension Increase 3
Pension Increase 4

Include In Underpin

Any Underpin to apply is defined by the Underpin Contribution Parameters on the Contributions Tab. Check this box if the benefit from this Slice should be included in the comparison against the Underpin benefit. Leave this box unchecked if the benefits from this Slice should not be included in the comparison against the Underpin benefit.

Benefit Basis

Select from the drop-down list whether the benefits described on this Slice are a Final Salary benefit or Career Average Revalued Earnings (CARE) benefit.

If Final Salary is selected then the benefit calculated from this Slice will increase in line with salary increases until retirement or earlier exit. The salary increase used will be taken from the Salary Increase Rate on the Financial Tab unless this has been overridden by the Salary Increase Override field on the Salary Tab.

If CARE is selected then the benefit calculated from this Slice will increase in line with the CARE Revaluation Rate on the Financial tab. Note that for past service CARE Slices the pension amount as at the Valuation Date is needed and should be entered as a Fixed Pension in Tiers 1, 2 or 3.

ERF Tables

ERF/LRF Tables

Select from the drop-down list which of the Early/Late Retirement Factor Tables to apply to the benefit arising from this Benefit Slice. (The Early-Retirement Factors are defined on the Ret Pension Tab. The Late Retirement Factors are defined on the Late Retirement Tab.) The options are as follows:

ERF1/LRF1 (Revaln 1 + 3) or ERF1/LRF1 (Revaln 2)
ERF2/LRF2 (Revaln 1 + 3) or ERF2/LRF2 (Revaln 2)

Spouse's DAR Override

The user has the option to enter an override for the Spouse’s Death after Retirement Percentage entered on the Ret Pension Tab.

Either enter the fixed percentage override as a percentage i.e. for 50% enter 50 rather than 0.5.

If you do not wish to use this option then leave blank.

Tier 2 Benefits Defined

Tier 3 Benefits Defined

Check the Tier 2 Benefits Defined box if you wish to define a second Tier of benefits. Leave unchecked if there is no additional Tier of benefits. If checked, the user will have the option to check the Tier 3 Benefits Defined Box to define a third Tier of benefits.

The benefits defined on either the second or third Tier can be added. Alternatively, the user has the option to subtracted a previous Tier from the final Tier of benefits defined i.e. Tier 1 or the sum of Tier 1 and Tier 2 can be deducted from Tier 3, or Tier 1 can be deducted from Tier 2.

Male PPF NRA (Levy Valuations)

Female PPF NRA (Levy Valuations)

On the Legislation Tab, enter the NRA to be attached to the GMP, which is converted in to excess pension, for PPF valuations.

Elsewhere, for Actives and Deferreds, select from the drop-down list which of the previously defined PPF NRAs applies to the pension or benefit slice. The PPF NRAs are specified on the PPF/Cap Tab.

For Pensioners enter the normal retirement age to be used as the PPF NRA in the PPF (S179 Levy) Valuation. The PPF NRAs are only used to determine the level of capping required. They do not override the Benefit Commencing Age. To allow for ill health retirements, use a sufficiently low age so that all members exceed this age i.e. 16. To allow for early retirement pensions, use an age such as 50.

PPF Service Period

PPF guidance, requires the user to show separately the Pre-1997 pension, post 6 April 1997 to 5 April 2009 pension and the Post 6 April 2009 pension.

Select from the drop-down list whether the pension is:

Pre-97
97 to 09
Post-09

Salary

Select from the drop-down list which of the salaries defined on the Salary Tab to use in the calculation of benefits from this Tier/Slice.

Leave this field blank to enable the Fixed Pension field where a fixed pension benefit can be valued.

Accrual Rate Multiplier

Accrual Rate Divisor

Accrual Rate [Data Item]

Enter both the numerator and the denominator for the rate of accrual where this is the same for all members for this Benefit Slice i.e. for 1/60th accrual enter 1 in the numerator and 60 in the denominator.

If the accrual rate varies by member, then leave these two fields blank and this will enable you to enter an Accrual Rate Data Item instead. Select from the drop-down list the data item containing the Member Specific Accrual Rate. The data item should contain the Accrual Rate as a percentage i.e. for 1/60th use 0.01667. (This might be used when each member has a targeted benefit of 2/3rds over their career but receive a pro-rata amount on earlier exit. The Member Specific Accrual Rate Calculator can be used to calculate such a data item.)

The benefit from the Tier will be calculated as the accrual rate (numerator/denominator) times Salary times service. The service would be the period specified on the Benefit Slice, or Accelerated Service Table, or Added Years.

When using Accelerated Service Tables or Service Related Accrual Tables, enter the underlying Accrual Rate that applies to all service here. Either the Accelerated Service Table or the Service Related Accrual Table will contain the number of years of the underlying Accrual Rate at each duration.

To enter a Fixed Pension, ensure both these and the Salary field above are blank.

Accrual Rate Table

If the accrual rate varies by age or service then this field can be used instead of Accrual Rate or the Accrual Rate Data Item.

Accrual varies by duration of service

If the accrual rate varies by service, then the table entered is indexed by the service period defined on the Benefit Slice. Double click to select an HT type table that contains the cumulative Accrual Rate Table. (Note the service defined on the slice is only used to reference the table and not in the Benefit Calculations.) For example, if the accrual rate was 80ths for the first 10 years service and then 60ths thereafter, the table would have 0.1250 at duration 10 (10 × 1/80) and 0.1417 at duration 11 (10/80 + 1/60).

Accrual Varies by age

If the accrual rate varies by age, then the table entered is indexed by the member’s age. Double click to select an HX type table that contains the Accrual Rate for each age. The rate at the members age will then be multiplied by the service period defined for the Benefit Slice. For example, if the accrual rate was 80ths before age 40 and 60ths thereafter, the table would hold the value 0.0125 at each age below 40 and 0.0167 at each age above 40.

Please note that the Accrual Rate Table can only be applied to service in a single Slice and cannot be applied across Benefit Slices (or Tiers). To value different Accrual Rates across different Slices then consider using the Service Related Accrual Table.

Some functionality only available to some users.

Accelerated Service Table

If the service granted for each year of accrual is greater than actual service then this field can be used to determine the service credit. Double click to select an ET type table containing the cumulative service credit that will be indexed by the period of service defined on the Benefit Slice. The corresponding value in the ET table will be used in the Benefit Calculations. (Part years will be linearly interpolated.)

For example, a member receives an additional 5 years pensionable service on completion of 10 years. The ET table would have an entry of 9 at duration 9 and 15 at duration 10, 16 at 11 etc.

The Accelerated Service Table should not be used with a maximum service restriction but instead the maximum service should be contained within the Table used.

Please note that the Accelerated Service Table can only be applied to service in a single Slice and cannot be applied across Benefit Slices (or Tiers). To value different Accrual Rates across different Slices then consider using the Service Related Accrual Table.

Some functionality is only available to some users.

Fixed Pension [Data Item]

Select from the drop-down list the data item containing the Fixed Pension Amount. This might have arisen from either a transfer-in or a past service CARE benefit.

Increase in Service

If the Benefit Basis is CARE, then this pension amount will be increased in service at the CARE Revaluation Rate.

If the Benefit Basis is Final Salary, then this pension amount will not be increased in service. (To value a fixed pension that increases in line with salaries, instead consider defining a salary equal to the pension amount and setting up a Slice with an accrual rate of 1/1 multiplied one year of service.

Increase in Deferment

This pension amount will be increased in deferment at the Revaluation in Deferment Rate specified on the Slices Tab. (The rate chosen will impact on the Early-Retirement Factors that are used.)

Note: A Pension Data Item and benefit accrual can be specified in the same Slice as long as they are on different Tiers. Alternatively they can be specified on different Slices.

Minimum Pension

This field can be used to define a minimum amount of pension that will be provided from this Tier of the particular Slice. This can either be fixed for all members of be member specific. Either enter the amount of the minimum pension or select from the drop-down list the data item containing the member specific data. The amount entered will not be increased by SuperVal between the valuation date and the point of exit ie retirement, withdrawal, death.

If no minimum applies then leave this field blank.

Maximum Pension

This field can be used to define a maximum amount of pension that that will be provided from this Tier of the particular Slice. This can either be fixed for all members of be member specific. Either enter the amount of the maximum pension or select from the drop-down list the data item containing the member specific data. The amount entered will not be increased by SuperVal between the valuation date and the point of exit ie retirement, withdrawal or death.

If no maximum applies then leave this field blank.

Pension Adjustment Factor

A negative or positive loading can be applied to the pension calculated from this Tier of benefits. This loading can either be fixed for all members or be a member specific amount.

For a fixed adjustment, enter the number as a multiplier i.e. 1.1 for a 10% increase or 0.9 for a 10% decrease. If no adjustment is required enter 1. If 0 is entered the liability for this Tier will be zero. To value a negative pension based on the parameters on the Tier, enter -1.

For a member specific adjustment, select from the drop-down list the data item containing the member specific adjustment factor.

The pension calculated in this Tier will be multiplied by the data item entered in this field.

Male PPF Adjustment Factor

Female PPF Adjustment Factor

A negative or positive loading can be applied to the pension calculated from this Tier of benefits on a PPF valuation. This loading can either be fixed for all members or be a member specific amount.

For a fixed adjustment, enter the number as a multiplier i.e. 1.1 for a 10% increase or 0.9 for a 10% decrease. If no adjustment is required enter 1. If 0 is entered the liability for this Tier will be zero. To value a negative pension based on the parameters on the Tier, enter -1.

For a member specific adjustment, select from the drop-down list the data item containing the member specific adjustment factor.

The pension calculated in this Tier will be multiplied by the data item entered in this field.

Deduct Tier 1

Deduct Tier 2

You can deduct the benefits calculated on Tier 1 from either of the benefit calculated on Tier 2 or Tier 3. In Tier 3 you can also deduct the sum of benefits calculated in Tiers 1 and 2. Check these boxes to determine which of the Tiers are deducted.

Typical use of this field is for a greater-of benefit comparison. For example, suppose a scheme provides a benefit which is the greater of $\frac{Service \times Salary}{80}$ and $\frac{Service \times (Salary - LEL)}{60}$ .

Two salaries have been defined in the Salary Tab i.e. Salary1 is Salary with no deduction and Salary2 is Salary with a LEL deduction.

The benefits on Tier 1 will be set up to define the 1/80ths benefit. The benefits on Tier 2 will be set up to define the excess of the 1/60th benefit over the 1/80th benefit where this is greater than 0. Specify the 1/60th benefit on Tier 2 then check the box to deduct Tier 1. Also ensure that the Minimum Pension specified is zero. (This will ensure the excess is only valued where greater than zero.) The total benefit valued by the Tiers will be:

1/80ths + Max (1/60ths – 1/80ths, 0) multiplied by the respective salaries and service.

Grid Help

Right-clicking on a Row Number presents a menu with the following options, which allow you to expand or reduce the number of rows of data to be entered:

Add a New Row to the bottom of the grid;
Insert a New Row at the position of the cursor; and
Delete the Current Row at the position of the cursor.

Grid Help

Right-clicking on the Top Left Corner of the grid displays a menu which allows you to set the following Grid Editing Options:

Editing of a cell can be invoked by either clicking on the cell or by pressing F2 when the cell is active (Clicking will only change the current active cell); and
determine the cursor movement once editing is complete to be either to the next cell down, the next cell to the right or to stay in the current cell.

Add Slice

Clicking on the Add Slice button allows you to add another Slice of benefits. Select from the box which of the slices the benefits on the new Slice should be based on. The choices are Default (to base the Slice on the defaults specified) or one of the existing Slices to copy an existing slice of benefits. The Slice will always be added at the end of current Slices.

Insert Slice

Clicking on the Insert Slice button allows you to insert another Slice definition. Select from the list of slices the slice definition you want to insert the new slice before.

Edit Slice

Pressing the Edit Slice button allows you to edit a Slice definition. You must select the Slice definition to be edited, unless a Slice definition is currently highlighted, in which case this Slice definition will be edited.

Delete Slice

Pressing the Delete Slice button allows you to, after confirmation, delete a Slice definition. You must select the Slice definition to be deleted, unless a Slice definition is currently highlighted, in which case this Slice definition will be deleted.

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.