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Deferreds Basis: IndPUPs

Independent PUP Description

Up to 20 separate Benefits can be specified.

Enter a description for the pension benefit being valued eg Post-97 pension.

This description will appear on the results output.

Note: The benefits on the Ind PUPs Tab can only be edited if the Independent PUPs box on the Main Tab has been checked.

PUP Amount

Select from the drop-down list the data item to be valued. The data item should contain the excess over the GMP.

Revaluation Rate Override

The user has the option to enter an override for the Excess Revaluation Rate entered on the Financial tab.

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.

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

Spouses 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 or select from the drop-down list the data item that contains the appropriate data for this PUP. If the override is fixed for all members, enter as a percentage i.e. for 50% enter 50 rather than 0.5. (Note for Ind Pups only a fixed percentage can be used.)

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

Complete Years Only Override

The user has the option to enter an override for the Count Complete Years entered on the Financial Tab.

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 selecting Yes these benefits will receive revaluations for the number of complete years only i.e. 0, 1, 2. By selecting No these benefits will receive an additional half-year of revaluations i.e. 0.5, 1.5, 2.5.

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

NRA Exits Rounding Override

The user has the option to enter an override for the NRA Exits Rounding entered on the Financial Tab.

Select from the drop-down list how the override 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.

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

Start Date

If either the ERF Indicator (or the GMP ERF Indicators) are set to Use Barber Start and End Dates or the Include in Underpin is set to Split According to Service then SuperVal requires a Start Date and a Finish Date for each of the PUPs.

The Start Date can either be fixed for all members or variable. Enter a fixed date in the form DD/MM/YYYY. To enter a variable date, select from the drop-down list the appropriate data item.

Finish Date

If the ERF Indicator (or the GMP ERF Indicators) are set to Use Barber Start and End Dates or the Include in Underpin is set to Split According to Service then SuperVal requires a Start Date and a Finish Date for each of the PUPs.
The Finish Date can either be fixed for all members or variable. Enter a fixed date in the form DD/MM/YYYY. To enter a variable date, select from the drop-down list the appropriate data item.

Male Start Age

Female Start Age

This is the age at which the Independent Pup being described will come into payment. This can either be a fixed date for all members or an age specific for each member.

To use a fixed age for all members, enter the age here.

To use a member’s specific age, select from the drop-down list the data item containing the member specific age.

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

Male End Age

Female End Age

This is the age at which the Independent Pup being described will stop being paid.

This can either be a fixed date for all members or an age specific for each member. To use a fixed age for all members, enter the age here. To use a member’s specific age, select from the drop-down list the data item containing the member specific age.

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

PUP Adjustment Factor

A negative or positive loading can be applied to the PUP.

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 the PUP will be zero.

This field can be used to allow for any contingencies, such as children’s pensions, which are not valued by SuperVal.

ERF Indicator

Select from the drop-down list which set of Early Retirement Reduction Factors to use. The options are

  • ERF1
  • ERF2
  • Use Barber Start and End Dates.

ERF1 and ERF2 are specified on the Ret Pension Tab.

If Use Barber Start and End Dates is selected, the user will be required to enter these dates on the Legislation Tab. For males, SuperVal will apply ERF2 between Barber Start Date and Barber End Date and ERF1 for all other periods of service. For females, SuperVal will apply ERF2 for service prior to the Barber End Date and ERF1 for service after this date. In addition, the user will be required to specify the Start Date and Finish Date for the PUP.

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

Select from the drop-down list how the PUP should be treated in the Underpin comparison. The options are:

  • Exclude
  • Include
  • Split According to Service

If Split According to Service is selected then enter the Start Date and Finish Date above and the Underpin Commencement Date on the Underpin Tab.

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

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 PUP

Clicking on the Add PUP Button allows you to add another PUP definition. Select whether to use the default pension definition or one of the existing PUP definitions as the starting point.

Insert PUP

Clicking on the Insert PUP button allows you to insert another PUP definition.

Select from the list of PUPs the PUP definition you want to insert the new PUP before.

Edit PUP

Pressing the Edit PUP button allows you to edit a PUP definition.

You must select the PUP definition to be edited, unless a PUP definition is currently highlighted, in which case this PUP definition will be edited.

Delete PUP

Clicking the Delete PUP button allows you to, after confirmation, delete a PUP.

You must select the PUP to be deleted, unless a PUP is currently highlighted, in which case this PUP 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.