Skip to content

Ind Annuity: Payment

Primary Annuitant's Age

The age of the primary annuitant in years and months.

Guarantee Period (years)

Enter the period for which the member’s pension is guaranteed to be paid irrespective of whether the member survives this period. For a 5 years post retirement guarantee enter 5. If no guarantee is payable enter 0.

For Pensioners the remaining years guarantee period will be calculated using the member’s standard data item DPC - Date Pension Commenced.

Overlap during Guarantee Period

If the member’s pension is guaranteed, then the option to select how the guarantee is paid becomes available.

Check this box if, on the member’s death during the guarantee period, all outstanding payments in the guarantee period are paid as a lump sum at death and any spouse’s reversion becomes payable immediately. When valuing Actives or Deferreds or using the annuity calculators, the option to select whether this benefit is discounted or undiscounted becomes available. For Pensioners, the lump sum is calculated as the sum of the undiscounted payments at the point of death when this option is selected.

Leave this box unchecked if, on the member’s death during the guarantee period, payments continue until the end of the guarantee period and any spouse’s reversion becomes payable thereafter. Payments are always discounted in this scenario.

Discounted LS on Death in Guarantee Period

The field is used to specify whether the Lump Sum paid as a result of a guarantee after death is discounted or undiscounted for Actives, Deferreds and the Annuity Calculator.

Check this box to discount, with interest, the lump sum payable. Leave this box unchecked if the lump sum payable is undiscounted.

Deferment Age

The age to which the commencement of any annuity payments are deferred in years and months (expressed in terms of the age of the primary annuitant). This will be after the start age for the annuitant.

Ceasing Age

The age at which annuity payments will cease in years and months (expressed in terms of the age of the primary annuitant).

The maximum allowable age of 120 will include payments for the life of the primary annuitant (and reversionary payments, if any, for the life of the reversionary annuitant).

Payment Frequency

Select from the drop-down list the frequency of the pension payments. The options are:

  • Annual
  • Semi-Annual
  • Quarterly
  • Monthly
  • Lunar-Monthly
  • Fortnightly
  • Weekly
  • Continuous

Payment Mode

Select from the drop-down list the timing of pension payments. The options are:

  • In Arrears
  • In Advance

Spouse's Age

Enter the age of the spouse (if any) in years and months.

Spouse's Reversion

Enter the reversion payable to the spouse (if any) expressed as a percentage of the member’s annuity.

Reversion payable to Spouse on Death in Deferment

If there is a deferment period, check the box to include in the calculation a reversionary annuity payable to the spouse on the death of the member during that deferment period.

Interest Rate (% p.a.)

This is the annual rate at which benefits will be discounted.

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. When using the annuity calculators, a fixed value may also be entered i.e. 9 for 9.00%.

To add a new Global Financial Parameter use the Edit Scheme Financials button at the bottom of this Tab.

Specify a Different Rate of Return on Reinvestment while in Deferment

Reinvestment Rate in Deferment (% p.a.)

Check this box to allow for a different rate of return on the reinvestment of investment earnings during the period of deferment.

You will then be required to enter a Reinvestment Rate in Deferment. This will be used to determine a modified discount rate for this period.

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.

Revaluation in Deferment (% p.a.)

This is the annual rate of increase in the benefit during the deferment period.

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.

Pension Increases in Payment (% p.a.)

This is the annual rate of increase in the pension once in payment.

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.

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.

Run

Click the Run button to run the calculations.

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.