Expense Rates

Scheme Fee

Scheme expenses can be expressed as a Scheme Fee which is then inflated at a Scheme Fee Inflation Rate.

The Scheme Fee will be split between different categories of active members in proportion to their respective total salaries. Note, that this Fee will remain unchanged (before inflation) irrespective of the membership level and thus, for an open fund, is generally only appropriate if a New Entrant Replacement Model is applied.

The Member Fee (inflating per remaining member) can be used to represent a Scheme Fee for an open fund where no replacement of members has been used. As the amount for each member decreases each year as the member decrements but the level of expense would (in theory) be maintained by new entrants to the Scheme.

Scheme Fee Inflation Rate (% p.a.)

This is the annual rate at which Scheme Fee will be increased.

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.

Member Fee

Scheme Expenses can be expressed as a fixed amount (which is inflated at the Scheme overall inflation rate) in respect of each remaining member in the Scheme.

The inflating fixed amount per member is an attempt to represent a Scheme Fee for an open fund where no replacement of members has been used as the amount for each member decreases each year as the member decrements but the level of expense would (in theory) be maintained by new entrants to the fund.

% of Company Contributions

Enter the Scheme Expenses expressed as a percentage of Company Contributions. For 5% enter 5 not 0.05.

Note, that the % of Company Contributions and the % of Member Contributions fields can be used in combination to get a percentage of total contributions.

% of Member Contributions

Enter the Scheme Expenses expressed as a percentage of Members’ Contributions. For 5% enter 5 and not 0.05.

Note, that the % of Company Contributions and the % of Member Contributions fields can be used in combination to get a percentage of total contributions.

% of Salaries

Scheme Expenses can be expressed as a percentage of Memberssalaries. For 5% enter5not0.05`.

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.

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.