Bulk Annuity: Payment
Primary Annuitant: Start Age (x)
End Age
Enter the start age at which annuities are to be calculated (expressed in terms of the primary annuitant’s age).
Guarantee Period (years)
Enter the period for which the member’s pension is guaranteed to be paid
irrespective of whether the member survives this period. For a 5 years
post retirement guarantee enter 5. If no guarantee is payable enter 0.
For Pensioners the remaining years guarantee period will be calculated
using the member’s standard data item DPC - Date Pension Commenced.
Overlap on Death in Guarantee Period
If the member’s pension is guaranteed, then the option to select how the guarantee is paid becomes available.
Check this box if, on the member’s death during the guarantee period, all outstanding payments in the guarantee period are paid as a lump sum at death and any spouse’s reversion becomes payable immediately. When valuing Actives or Deferreds or using the annuity calculators, the option to select whether this benefit is discounted or undiscounted becomes available. For Pensioners, the lump sum is calculated as the sum of the undiscounted payments at the point of death when this option is selected.
Leave this box unchecked if, on the member’s death during the guarantee period, payments continue until the end of the guarantee period and any spouse’s reversion becomes payable thereafter. Payments are always discounted in this scenario.
Discounted LS on Death in Guarantee Period
The field is used to specify whether the Lump Sum paid as a result of a guarantee after death is discounted or undiscounted for Actives, Deferreds and the Annuity Calculator.
Check this box to discount, with interest, the lump sum payable. Leave this box unchecked if the lump sum payable is undiscounted.
Deferment Age
Specify the Deferment Age (if any) in years (expressed in terms of the age of the primary annuitant). This will be after the start age for the annuitant.
Ceasing Age
The age at which annuity payments will cease in years (expressed in terms of the age of the primary annuitant).
The maximum allowable age of 120 will include payments for the life of the primary annuitant (and reversionary payments, if any, for the life of the reversionary annuitant).
Payment Frequency
Select from the drop-down list the frequency of the pension payments. The options are:
- Annual
- Semi-Annual
- Quarterly
- Monthly
- Lunar-Monthly
- Fortnightly
- Weekly
- Continuous
Payment Mode
Select from the drop-down list the timing of pension payments. The options are:
- In Arrears
- In Advance
Proportions Married Table
Double click to select the table containing the proportion married for members at each age.
In ongoing runs, these fields are used to determine the proportion of the member’s benefit paid to a spouse or partner on death in service (actives only), death in deferment or death after retirement. The field Spouse’s Definition enables you to select how the proportion married is applied.
In PPF runs the fields in the Scheme PPF parameters can be used to enter the proportion married separately for male and female spouses and male and female partners.
If 90% of members are assumed to be married at all ages then enter a
table containing 0.9.
More information is available in the Infocus Document called Proportion Married.
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.
Age Rating
Any Rate Table can be rated up or down by a number of years as required
to make the rate at every age lighter or heavier than in the
original table.
A value of +10 will result, for example, in the value selected for a
30 year old actually being the rate for a 40 year old and for a value of
-5 would mean that the value at age 25 is selected.
If an age rating of a fraction of a year is required, a new table will have to be created through the Edit rate table option on the Rate Table form.
% Rating
A percentage adjustment can be made to either a Rate Table or a Salary.
The Rate Tables can be adjusted by a percentage loading to make the decrement rate lighter or heavier than the original table. The salary for new entrants can be loaded to reflect changes in the salary profile.
Enter the number as percentage above 100% i.e. if a loading of 110% is
required then enter 10 or if a loading of 90% then enter -10. If no
adjustment is required then leave blank.
Proportion Married
Users can express the proportion married as a single percentage across all ages.
Spouse's Age Difference (x-y)
This field is used to set an age difference between a member and their spouse that is identical for all members. It is used when valuing death benefits prior to retirement and contingent annuities on death after retirement. For pensioners death benefits prior to retirement may occur when the Benefit Commencing Age is after the member’s current age.
Enter the relevant value containing Member’s Age minus Spouse’s Age ie
if Members are 3 years older than their spouse enter 3.
If you wish to use an Age Rating that varies with the member’s age then leave this field blank and the Age Difference Table will become available. (This functionality is not available for PPF runs or for the annuity calculators.)
The Age Difference Table field is only available to some users.
Spouse's Reversion
Enter the reversion payable to the spouse (if any) expressed as a percentage of the member’s annuity.
Reversion payable to Spouse on Death in Deferment
If there is a deferment period, check the box to include in the calculation a reversionary annuity payable to the spouse on the death of the member during that deferment period.
Value Spouse's Reversion only
Check this if the annuity for only the Spouse’s Reversion is required.
Interest Rate (% p.a.)
This is the annual rate at which benefits will be discounted.
Select from the drop-down list the Global Financial Parameter that contains the rate applicable. Once selected the current value of the Global Financial Parameter is shown to the right of this field. When using the annuity calculators, a fixed value may also be entered i.e. 9 for 9.00%.
To add a new Global Financial Parameter use the Edit Scheme Financials button at the bottom of this Tab.
Specify a Different Rate of Return on Reinvestment while in Deferment
Reinvestment Rate in Deferment (% p.a.)
Check this box to allow for a different rate of return on the reinvestment of investment earnings during the period of deferment.
You will then be required to enter a Reinvestment Rate in Deferment.
This will be used to determine a modified discount rate for this
period.
Select from the drop-down list the Global Financial Parameter that contains the rate applicable. Once selected the current value of the Global Financial Parameter is shown to the right of this field.
To add a new Global Financial Parameter use the Edit Scheme Financials button at the bottom of this Tab.
Revaluation in Deferment (% p.a.)
This is the annual rate of increase in the benefit during the deferment period.
Select from the drop-down list the Global Financial Parameter that contains the rate applicable. Once selected the current value of the Global Financial Parameter is shown to the right of this field.
To add a new Global Financial Parameter use the Edit Scheme Financials button at the bottom of this Tab.
Pension Increases in Payment (% p.a.)
This is the annual rate of increase in the pension once in payment.
Select from the drop-down list the Global Financial Parameter that contains the rate applicable. Once selected the current value of the Global Financial Parameter is shown to the right of this field.
To add a new Global Financial Parameter use the Edit Scheme Financials button at the bottom of this Tab.
Value Pension Increases only
Check this if the annuity for only the Pension Increases is required.
Edit Scheme Financials
Clicking the Edit Scheme Financials button takes you to the Scheme Financials menu.
Here you will be able to see a list of all the Financials that are currently defined. Double-click on the tree to see an expanded list of all financial assumptions that are defined.
Click the Add/Edit Financials to change the value of one of the assumptions.
Run
Click the Run button to run the calculations.
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.