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Commutation Tables

Calculate Commutation Factors based on Valuation Basis

SuperVal will calculate commutation factors applicable to each individual member using the valuation basis and the all relevant Basis Parameters (Guarantee Period, Post Retirement Mortality, Post Retirement Interest rate and Pension Increases).

% of Valuation Basis Factor

Users can define the % of Valuation Basis Factor they want to apply to the Scheme. To have this field visible the above field Calculate Male/Female Commutation Factors based on Valuation Basis needs to be ticked. The Valuation Factors produced by SuperVal can be seen in individual VARPRINTs.

Main Increase Commutation Table

Special Increase Commutation Table

PenInc3 Commutation Table

PenInc4 Commutation Table

Double click to select the rate table containing the Commutation Factors ie the amount of cash received for each pound per annum of pension commuted. Please note that SuperVal assumes exits prior to NRA occur half-way through the year i.e. 0.5 years, 1.5 years etc after the valuation date. Exits at NRA occur at the beginning of the year. This should be reflected in the Commutation Factors entered into the table ie for ages prior to NRA the factor in the table should be the factor that would apply at the point of exit.

For example, a factor of 9 at age 65 means that for every pound surrendered in pension at age 65 the member would receive £9 in cash.

Separate tables can be specified for males and females and for each of the different pension increase rates (Main, Special, Pension Increase 3 and Pension Increase 4) being used.

Even if cash is payable on top of pension benefits, cash commutation factors are still required for application of IR Maximum rules.

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 Commutation 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.

Adjust Commutation Tables by the change in member's expectation of life

Future mortality-improvement assumptions underlying the Technical Provisions can be applied to the tabulated commutation factors in force at the valuation date, to calculate revised commutation factors at the date of exit.

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.