Deferreds Basis: RetCOT
Cash Parameter Set
Cash Parameter Set is a Scheme Global parameter which groups the
Retirement Cash Commutation variables. This can be created by using
either the Create Globals function or using the Add/Edit Retirement
Cash button. Once created, these parameters can be edited without going
back into the Basis similar to other global parameter sets.
Benefit Basis
Benefit Basis can be Neutral/Nil, Multiple of Pension or Percentage of Pension.
Cash Data Field
Cash Multiple
Cash Percentage
The cash on top can be calculated either as a Multiple, a Percentage of the PUP or a Member Specific Amount of Cash.
If an entry is made in the Multiple field, the cash on top cash will be calculated as:
Multiple × PUP revalued to retirement × Early Retirement Reduction Factor (if applicable).
The Multiple can either be a fixed Multiple for all members or a Member
Specific Multiple. To use a fixed Multiple enter the value i.e. for 4
times the PUP enter 4. To use a Member Specific Multiple, select from
the drop-down list the data item containing the appropriate value. To
value commutation of 4 times the PUP ensure the data item contains the
value 4.
To value a Percentage, ensure the entry in the Multiple field is blank. The cash on top will be calculated as:
Percentage × PUP revalued to retirement × Commutation Factor × Early Retirement Reduction Factor (if applicable).
The Percentage can either be a fixed Percentage for all members or a
Member Specific Percentage. To use a fixed Percentage enter the value ie
for 25% enter 25. To use a Member Specific Percentage, select from the
drop-down list the data item containing the appropriate value. To value
commutation of 25% of the PUP ensure the data item contains the value
25.
To value a Cash Data Item for cash on top, ensure the entry for both the Multiple and the Percentage fields are blank. Select from the drop-down list the data item containing the amount of Cash on Top payable for each member. The lump sum will be revalued in line with the assumption for Excess Revaluations specified on the Financial Tab between date of valuation and retirement. For retirements prior to NRA the benefit will be reduced in line with ERFs specified for Cash on Top.
Male Retirement Factors Parameter Set
Female Retirement Factors Parameter Set
Retirement Factor Parameter Set is a Scheme Global parameter which
groups the Male or Female Retirement Factor variables. This can be
created by using either the Create Globals function or using the
Add/Edit Retirement Factors button. Once created, these parameters
can be edited without going back into the Basis similar to other global
parameter sets.
Male ERF1
Male ERF2
Female ERF1
Female ERF2
Actives
This field allows the user to specify a set of early retirement
reduction factors that apply to cash-on-top benefits options other than
Accrual × Salary for each year. When using Accrual × Salary for each
year SuperVal always assumes the Early-Retirement Factors are equal to
1.00. The user can specify 4 different sets of Early-Retirement Factors.
These are:
- ERF1 for use with Revaluation Rates in deferments 1 and 3
- ERF1 for use with Revaluation Rate 2
- ERF2 for use with Revaluation Rates in deferment 1 and 3
- ERF2 for use with Revaluation Rate 2
Users without access to Late Retirement Code
The rate table is typically an FX table and should contain non-zero
entries for ages at which members are assumed to retire. Please note
that SuperVal assumes exits prior to NRA occur half-way through the year
ie 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
early-retirement reduction factor tables used. Therefore, if the
reduction is 4% simple per annum, and the NRA is 65, the table should be
defined as follows:
| Age | Rate |
|---|---|
| 65 | 1.00 |
| 64 | 0.98 |
| 63 | 0.94 |
| 62 | 0.90 |
| Etc. |
Benefits of member’s above NRA can be adjusted to reflect late payment by adding a factor in ages above NRA i.e. 1.04 at age 66 for a 4% increase. Please note members above NRA will be assumed to retire at the valuation date.
Where this has been left blank, SuperVal will use the Pension Early-Retirement Factors specified. (To value an unreduced cash payment enter a table with 1.00 at each age.)
Double-click to select from a list of available rate tables.
Users with access to Late Retirement Code
The rate table is typically an FX table and should contain non-zero
entries for ages at which members are assumed to retire. SuperVal will
only use the table specified here prior to NRA.
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 early-retirement reduction factor tables used. Therefore, if the reduction is 4% simple per annum, and the NRA is 65, the table should be defined as follows:
| Age | Rate |
|---|---|
| 65 | 1.00 |
| 64 | 0.98 |
| 63 | 0.94 |
| 62 | 0.90 |
| Etc. |
Where a Late Retirement Age has not been specified, members above NRA will be assumed to retire immediately with an ERF of 1 applied to their benefit.
Where a Late Retirement Age has been specified, members above NRA will be assumed to retire in accordance with the ER/LR decrement specified on the Demographic Tab. Please note all retirements after NRA occur at the beginning of the year. Their benefits above NRA will be adjusted using the Late Retirement Factors specified on the Late Retirement Tab.
Where this has been left blank, SuperVal will use the Pension Early-Retirement Factors specified. (To value an unreduced cash payment enter a table with 1.00 at each age.)
Double-click to select from a list of available rate tables. Deferreds
This field allows the user to specify a set of early retirement reduction factors that apply to cash-on-top benefits options. The user can specify 2 different sets of Early-Retirement Factors. These are:
- ERF1
- ERF2
The rate table is typically an FX table and should contain non-zero
entries for ages at which members are assumed to retire. Please note
that SuperVal assumes exits prior to NRA occur half-way through the year
ie 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
early-retirement reduction factor tables used. Therefore, if the
reduction is 4% simple per annum, and the NRA is 65, the table should be
defined as follows:
| Age | Rate |
|---|---|
| 65 | 1.00 |
| 64 | 0.98 |
| 63 | 0.94 |
| 62 | 0.90 |
| Etc. |
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.
Linearly Interpolate Male Retirement Factors for mid-point Exit values
Linearly Interpolate Female Retirement Factors 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.
Add/Edit Retirement Cash
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.
Add/Edit Retirement Factors
Add or Edit any Retirement Factor parameter sets
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.