Deferreds Basis: Financial
Pre Retirement Interest Rate
This is the annual rate at which benefits will be discounted pre retirement.
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.
For Active members, the user can select whether the Pre Retirement Interest Rate or the Post Retirement Interest Rate is used for Accrued Valuations and for discounting benefits post withdrawal in the Switch field.
Post Retirement Interest Rate
This is the annual rate at which benefits will be discounted post retirement.
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.
For Active members, the user can select whether the Pre Retirement Interest Rate or the Post Retirement Interest Rate is used for Accrued Valuations and for discounting benefits post withdrawal in the Switch field.
Excess Revaluation
This is the rate at which the PUP will increase in deferment i.e. between valuation date and NRA.
Select from the drop-down list the Global Financial Parameter that contains the rate applicable. Once selected, the current value 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.
Count Complete Years
Check this box if exits before NRA should only receive revaluations for each complete year between valuation date and date of exit. Leave the box unchecked to allow for the extra half-year revaluation to date of exit.
Exits before NRA, such as early retirement and death in deferment, are assumed to occur half-way through the year i.e. 0.5, 1.5, 2.5 years after the valuation date. By checking this box, these benefits will receive revaluations for the number of complete years only i.e. 0, 1, 2. If the box is unchecked, the benefits will receive an additional half-year of revaluation i.e. 0.5, 1.5, 2.5.
On each of the PUPs, Ind PUPS and NSPUPs Tabs you can choose to override this entry and use the other approach.
NRA Exits Rounding
Select from the drop-down list how the rounding for exits at NRA should be calculated. The revaluation of the PUP to Normal Retirement Age will be based on the exact duration between Valuation Date and Normal Retirement Date, rounded according to the parameter entered. The options are:
- Exact Days
- Months Rounded Down
- Nearest Months
- Months Rounded Up
- Years Rounded Down
- Nearest Years
- Years Rounded Up
- Complete Tax Years
The discounting of the benefit will be based on years nearest.
Pre Valuation Date Revaluation
Select from the drop-down list how to revalue the excess pension between date of leaving and valuation date. The options are:
- No
- Fixed Rate
- s52 index
Use No
where the excess pension already includes revaluations to the
valuation date.
Use Fixed Rate
where a single rate of revaluation applies between date
of leaving and date of valuation. The value can then be entered in the
Pre Valn Date Rate.
Uses s52 Index
where a table of revaluation rates between date of
leaving and date of valuation should be applied. The table can be
entered in the Pre Valn Date Factor Set.
Pre Valuation Date Factor Set
Select from the drop-down list the appropriate Factor to use. This option is available if Pre Valn Date Revaluation is set to s52 Index.
Pre Valuation Date Rate
Pre Valn Date Rate
This is the rate at which the excess pension will be increased between date of leaving and date of valuation if Fixed Rate has been selected for Pre Valn Date Revaluation.
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.
Pre Valuation Date Rate Rounding
Where Fixed Rate
has been selected for Pre Valuation Date
Revaluation, select from the drop-down
list how the rounding for revaluations between date of leaving and
valuation date should be calculated. The options are:
- Exact Days
- Months Rounded Down
- Nearest Months
- Months Rounded Up
- Years Rounded Down
- Nearest Years
- Years Rounded Up
- Complete Tax Years
Pre 1988 GMP
This is the rate at which Pre-1988 GMP benefits will increase in payment annually.
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.
Post 1988 GMP
This is the rate at which Post-1988 GMP benefits will increase in payment annually.
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.
Main
This is the rate at which pensions will increase in payment annually where Main has been selected for Pension Increases in Payment on either the Slices tab (Active) or one of the PUPS tabs (Deferred).
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.
Special
This is the rate at which pensions will increase in payment annually where Special has been selected for Pension Increases in Payment on either the Slices tab (Active) or one of the PUPS tabs (Deferred).
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.
PenInc3
This is the rate at which pensions will increase in payment annually where Pension Increase 3 has been selected for Pension Increases in Payment on either the Slices tab (Active) or one of the PUPS tabs (Deferred).
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.
PenInc4
This is the rate at which pensions will increase in payment annually where Pension Increase 4 has been selected for Pension Increases in Payment on either the Slices tab (Active) or one of the PUPS tabs (Deferred).
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.
Timing of Pension Increases
Select from the drop-down list how the timing of pension increases should be applied. The options are:
- Continuous
- Review Date
If Review Date is selected then enter the day and month (DD/MM) the increase is paid in the Increase Date field.
Increase Date
If the Timing of Pension Increases has been set to Review Date then enter the day and month of the pension increase date. The date should be in DD/MM format.
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.
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.