Edit UKSlice: Tier1

Salary

Select from the drop-down list which of the salaries defined on the Salary Tab to use in the calculation of benefits from this Tier/Slice.

Leave this field blank to enable the Fixed Pension field where a fixed pension benefit can be valued.

Accrual Rate

Accrual Rate Data Item

Enter both the numerator and the denominator for the rate of accrual where this is the same for all members for this Benefit Slice i.e. for 1/60th accrual enter 1 in the numerator and 60 in the denominator.

If the accrual rate varies by member, then leave these two fields blank and this will enable you to enter an Accrual Rate Data Item instead. Select from the drop-down list the data item containing the Member Specific Accrual Rate. The data item should contain the Accrual Rate as a percentage i.e. for 1/60th use 0.01667. (This might be used when each member has a targeted benefit of 2/3rds over their career but receive a pro-rata amount on earlier exit. The Member Specific Accrual Rate Calculator can be used to calculate such a data item.)

The benefit from the Tier will be calculated as the accrual rate (numerator/denominator) times Salary times service. The service would be the period specified on the Benefit Slice, or Accelerated Service Table, or Added Years.

When using Accelerated Service Tables or Service Related Accrual Tables, enter the underlying Accrual Rate that applies to all service here. Either the Accelerated Service Table or the Service Related Accrual Table will contain the number of years of the underlying Accrual Rate at each duration.

To enter a Fixed Pension, ensure both these and the Salary field above are blank.

Accrual Rate Table

If the accrual rate varies by age or service then this field can be used instead of Accrual Rate or the Accrual Rate Data Item.

Accrual varies by duration of service

If the accrual rate varies by service, then the table entered is indexed by the service period defined on the Benefit Slice. Double click to select an HT type table that contains the cumulative Accrual Rate Table. (Note the service defined on the slice is only used to reference the table and not in the Benefit Calculations.) For example, if the accrual rate was 80ths for the first 10 years service and then 60ths thereafter, the table would have 0.1250 at duration 10 (10 × 1/80) and 0.1417 at duration 11 (10/80 + 1/60).

Accrual Varies by age

If the accrual rate varies by age, then the table entered is indexed by the member’s age. Double click to select an HX type table that contains the Accrual Rate for each age. The rate at the members age will then be multiplied by the service period defined for the Benefit Slice. For example, if the accrual rate was 80ths before age 40 and 60ths thereafter, the table would hold the value 0.0125 at each age below 40 and 0.0167 at each age above 40.

Please note that the Accrual Rate Table can only be applied to service in a single Slice and cannot be applied across Benefit Slices (or Tiers). To value different Accrual Rates across different Slices then consider using the Service Related Accrual Table.

Some functionality only available to some users.

Selecting rate tables

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.

Accelerated Service Table

If the service granted for each year of accrual is greater than actual service then this field can be used to determine the service credit. Double click to select an ET type table containing the cumulative service credit that will be indexed by the period of service defined on the Benefit Slice. The corresponding value in the ET table will be used in the Benefit Calculations. (Part years will be linearly interpolated.)

For example, a member receives an additional 5 years pensionable service on completion of 10 years. The ET table would have an entry of 9 at duration 9 and 15 at duration 10, 16 at 11 etc.

The Accelerated Service Table should not be used with a maximum service restriction but instead the maximum service should be contained within the Table used.

Please note that the Accelerated Service Table can only be applied to service in a single Slice and cannot be applied across Benefit Slices (or Tiers). To value different Accrual Rates across different Slices then consider using the Service Related Accrual Table.

Some functionality is only available to some users.

Typical uses for this table may be uplifted service or extra years of service granted after a certain period. For example, suppose that members receive a further 5 years pensionable service on completion of 10 years. The Service Related Accrual Table would have an entry of 9 at duration 9 and 15 at duration 10, 16 at 11 etc. i.e. the table is cumulative.

Please note that the Service Related Accrual Table will be applied across Benefit Slices (or Tiers).

If a ET, FT, GT and HT table is not defined, then the service will be the period between the Start Date (or minimum start date) and Finish Date (or maximum finish date) for the Benefit Slice. Allowance would be made for maximum service.

Double click to select from the list of available ET, FT, GT and HT type rate tables.

When using this field, you will be required to enter the date from which service starts to accrue in the DOE Qualifying Service on the Membership Tab.

Not all functionality is available to all users.

Fixed Pension

Select from the drop-down list the data item containing the Fixed Pension Amount. This might have arisen from either a transfer-in or a past service CARE benefit.

Increase in Service

If the Benefit Basis is CARE, then this pension amount will be increased in service at the CARE Revaluation Rate.

If the Benefit Basis is Final Salary, then this pension amount will not be increased in service. (To value a fixed pension that increases in line with salaries, instead consider defining a salary equal to the pension amount and setting up a Slice with an accrual rate of 1/1 multiplied one year of service.

Increase in Deferment

This pension amount will be increased in deferment at the Revaluation in Deferment Rate specified on the Slices Tab. (The rate chosen will impact on the Early-Retirement Factors that are used.)

Note: A Pension Data Item and benefit accrual can be specified in the same Slice as long as they are on different Tiers. Alternatively they can be specified on different Slices.

Minimum Pension

This field can be used to define a minimum amount of pension that will be provided from this Tier of the particular Slice. This can either be fixed for all members of be member specific. Either enter the amount of the minimum pension or select from the drop-down list the data item containing the member specific data. The amount entered will not be increased by SuperVal between the valuation date and the point of exit ie retirement, withdrawal, death.

If no minimum applies then leave this field blank.

Maximum Pension

This field can be used to define a maximum amount of pension that that will be provided from this Tier of the particular Slice. This can either be fixed for all members of be member specific. Either enter the amount of the maximum pension or select from the drop-down list the data item containing the member specific data. The amount entered will not be increased by SuperVal between the valuation date and the point of exit ie retirement, withdrawal or death.

If no maximum applies then leave this field blank.

Pension Adjustment Factor

A negative or positive loading can be applied to the pension calculated from this Tier of benefits. This loading can either be fixed for all members or be a member specific amount.

For a fixed adjustment, 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 this Tier will be zero. To value a negative pension based on the parameters on the Tier, enter -1.

For a member specific adjustment, select from the drop-down list the data item containing the member specific adjustment factor.

The pension calculated in this Tier will be multiplied by the data item entered in this field.

Deduct Tier 1

Deduct Tier 2

You can deduct the benefits calculated on Tier 1 from either of the benefit calculated on Tier 2 or Tier 3. In Tier 3 you can also deduct the sum of benefits calculated in Tiers 1 and 2. Check these boxes to determine which of the Tiers are deducted.

Typical use of this field is for a greater-of benefit comparison. For example, suppose a scheme provides a benefit which is the greater of $\frac{Service \times Salary}{80}$ and $\frac{Service \times (Salary - LEL)}{60}$ .

Two salaries have been defined in the Salary Tab i.e. Salary1 is Salary with no deduction and Salary2 is Salary with a LEL deduction.

The benefits on Tier 1 will be set up to define the 1/80ths benefit. The benefits on Tier 2 will be set up to define the excess of the 1/60th benefit over the 1/80th benefit where this is greater than 0. Specify the 1/60th benefit on Tier 2 then check the box to deduct Tier 1. Also ensure that the Minimum Pension specified is zero. (This will ensure the excess is only valued where greater than zero.) The total benefit valued by the Tiers will be:

1/80ths + Max (1/60ths – 1/80ths, 0) multiplied by the respective salaries and service.

Male PPF Adjustment Factor

Female PPF Adjustment Factor

A negative or positive loading can be applied to the pension calculated from this Tier of benefits on a PPF valuation. This loading can either be fixed for all members or be a member specific amount.

For a fixed adjustment, 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 this Tier will be zero. To value a negative pension based on the parameters on the Tier, enter -1.

For a member specific adjustment, select from the drop-down list the data item containing the member specific adjustment factor.

The pension calculated in this Tier will be multiplied by the data item entered in this field.

Previous Slice

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Next Slice

Move on to the next Slice. Select "ok" to save any changes to the current Slice.

OK

When you have finished entering the relevant information, click the OK button to move to the next screen.

SuperVal will check that all of the required entries on the page have been made. If additional fields require data SuperVal will show briefly in red which is the first of these fields found on the page.

Cancel

Clicking on the Cancel button allows you to return to the previous screen without saving any of your changes.