Deferreds Basis: TVBasis
Same as Valuation Basis Cash Flows
Same as Valuation Basis Interest Rates
Same as Valuation Basis Increase Rates
Same as Valuation Basis Spouse Parameters
Transfer assumptions can be set to always be the same as the Valuation Basis i.e. either one or more of the following:
- cash flow parameters (capitalised or spread)
- interest rates
- increase rates
- spouse parameters (proportion married, age difference)
- member’s pre retirement mortality
- member’s post retirement mortality
- spouse / partner’s post retirement mortality
Transfer Benefits Capitalised or Spread
This and the other Cash Flow Parameters only affect the Cash Flow
Summary page in the Excel Output/Consolidation Output. They do not have
any effect on the Valuation Results.
Select from the drop-down list the option to use. The options are:
- Capitalise
- Spread
If Capitalise is selected the output will show the cashflows assuming
the benefits are capitalised at the point of first payment.
If Spread is selected the output will show the cashflows as they
become due.
However, the Death in Deferment Liability shown will always be the capitalised value of the payments. The user can choose the point at which the Death in Deferment Liability is shown in the Cash Flows summary in the Death in Deferment Method field.
In addition, if Spread is chosen for Actives or Deferreds, the user
will be required to specify at which point the Underpin Liability is
capitalised in the Underpin Method.
When running a DAB method valuation, this field must be set to Capitalise.
Transfers 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.
Transfers 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.
Transfers 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.
Transfers 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.
Transfers 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.
Transfers 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.
Transfers 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.
Transfers 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.
Transfers Spouse Parameter Set
Spouse Parameter Set is a Scheme Global parameter which groups the
Spouse variables. This can be created by using either the Create
Globals function or using the Add/Edit Spouse Parameters button. Once
created, these parameters can be edited without going back into the
Basis similar to other global parameter sets.
Transfers Spouse Definition
Select from the drop-down list how to value the spouse’s pension on death after retirement. The options are:
- Retirement
- Death
If Retirement is selected, SuperVal will use the proportion married as at the member’s age at retirement.
If Death is selected, SuperVal will use the proportion married as at the member’s age at death.
For more information please see the Infocus Document relating to Proportion Married.
Male Transfers Proportion Married Table
Female Transfers Proportion 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.
Male Transfers Proportion Married
Female Transfers Proportion Married
Users can express the proportion married as a single percentage across all ages.
Male Transfers Age Difference Table (m-f)
Female Transfers Age Difference Table (f-m)
This field is used to enter an age-dependent table if the age difference between a member and their spouse varies according to the member’s age. 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.
Double click to select the AD table that contains the relevant data.
The table should contain the values for Member’s Age minus Spouse’s Age
ie if Members are 3 years older than their spouse enter 3.
This field is only available to some users.
Related
Male Transfers Age Difference (m-f)
Female Transfers Age Difference (f-m)
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.
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.
Add/Edit Spouse Parameters
Add or Edit any Spouse 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.