Actives Basis: Financial
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.
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.
Switch
This field is used to determine which of the Pre Retirement Interest Rate or the Post Retirement Interest Rate is used for discounting post withdrawal and for Accrued Valuations. Select from the drop-down list which of the following options to use:
- Use Post-Ret Int for Accrued/Wdls
- Use Pre-Ret Int for Accrued/Wdls
The table below sets out which interest rate is used for each of the decrements under both scenarios.
| Ongoing Valuation | Using Pre Ret Int Rate | Accrued Using Pre Ret Int Rate | Ongoing Valuation Using Post Ret Int Rate | Accrued Using Post Ret Int Rate |
|---|---|---|---|---|
| Retirement Pensions | ||||
| - Pre Retirement | Pre | Pre | Pre | Post |
| - Post Retirement | Post | Post | Post | Post |
| Leaving Service Pension | ||||
| - Pre Exit | Pre | n/a | Pre | n/a |
| - Exit to Retirement | Pre | n/a | Post | n/a |
| - Post Retirement | Post | n/a | Post | n/a |
| DIS Lump Sum | Pre | n/a | Pre | n/a |
| DIS Spouse’s | ||||
| - Pre death | Pre | n/a | Pre | n/a |
| - Post death | Post | n/a | Post | n/a |
| DID Lump Sum | ||||
| - Pre exit | Pre | Pre | Pre | Pre |
| - Exit to death | Pre | Pre | ||
| DID Spouse’s | ||||
| - Pre Exit | Pre | Pre | ||
| - Exit to Death | Pre | Pre | Pre | Pre |
| - Post Death | Post | Post | Post | Post |
Salary Increase Rate
This is the annual rate at which salaries for all members will increase to date of exit. A Promotional Salary Scale in excess of general salary increases can be specified on the Salaries tab.
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.
This will be used in all salary definitions unless the Salary Inflation Rate Override on the Salaries tab is populated.
CARE Scheme: Revaluation Rate
This is the annual rate at which CARE benefits will be increased to date of exit.
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.
First year of CARE accrual is Revalued Immediately
Check this box to revalue the CARE benefit accrued in the year of exit immediately. Leave this box unchecked to revalue the CARE benefit accrued in the year of exit in the following year only. Consider a member with:
P = Accrued CARE Pension
S = Salary over the year
r = Revaluation Rate.
The accrual rate is 1/60.
If the box is checked to increase the accrued benefit immediately then the benefit at the end of the year is calculated as (P + S/60) × (1+r)
If the box is unchecked then the benefit is calculated at the end of the year as P \times (1+r) + S/60
Not all fields are available to all users.
Scheme Revaluation: Review Date or Continuous
Select from the drop-down list how to apply CARE Scheme Revaluations. The options are:
- Continuous
- Review Date
If Review Date is selected then enter the day and month (DD/MM) Revaluations are reviewed in the Review Date field.
CARE Scheme Revaluation: Review Date
If CARE Scheme Revaluations take place on a Review Date, then enter the review date using the DD/MM format.
Deferred Revaluation Rate
This is the first of three revaluation rates that can be used to increase the excess pension between date of exit and Normal Retirement Age.
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.
Deferred Revaluation Rate 2
This is the second of three revaluation rates that can be used to increase the excess pension between date of exit and Normal Retirement Age.
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.
Deferred Revaluation Rate 3
This is the third of three revaluation rates that can be used to increase the excess pension between date of exit and Normal Retirement Age.
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.
Curtate Revaluation Period
Check this box if exits before NRA should only receive revaluations for each complete year. Leave the box unchecked to allow for the extra half-year revaluation.
Exits before NRA, such as early retirement and death in deferment, are assumed to occur half-way through the year i.e. 0.5, 1.5, 2.5 years after the valuation date. By checking this box, these benefits will receive deferred revaluations for the number of complete years only i.e. 0, 1, 2. If the box is unchecked, the benefits will receive an additional half-year of revaluation i.e. 0.5, 1.5, 2.5.
Barber Adjustment to Benefits on Withdrawal
- Financial Male Barber Adjustment to Main
- Financial Male Barber Adjustment to Special
- Financial Male Barber Adjustment to PenInc3
- Financial Male Barber Adjustment to PenInc4
- Financial Female Barber Adjustment to Main
- Financial Female Barber Adjustment to Special
- Financial Female Barber Adjustment to PenInc3
- Financial Female Barber Adjustment to PenInc4
If you have a withdrawal decrement, the accumulated benefit from the Slices will be valued at the Normal Retirement Age specified on the Membership Tab. The early retirement/late retirement parameters are ignored.
If part of the accumulated benefit can be taken earlier or later than NRA, then a loading to that part of the withdrawal liability can be made. The loading adjustment is applied to the accumulated benefits arising from all Slices where Early Retirement Reduction Factors 1 (ERF1) has been selected.
The loading can either be fixed or variable. If the loading is fixed then enter the loading to be applied to the benefit as a multiplier ie to load the benefits by 20% enter a loading of 1.2. If the loading varies with the Financial Assumptions used then enter the loading as a Scheme Constant. (Right click over the field for a list of the constants that have been defined.)
Different loadings can be applied to the Male and Female benefits and the benefits arising from each of the 4 different pension increase rates.
Although SuperVal will not apply early retirement reduction factors to the different Benefit Slices on withdrawal, it is able to determine which part of the accumulated benefits arises from Slices with ERF1 and which part arises from Slices with ERF2. The accumulated benefits arising from Slices with ERF1 will be multiplied by the loading factor in these fields.
Pre-1988 GMP Increases in Payment
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.
Post-1988 GMP Increases in Payment
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.
Pension Increases
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.
Pension Increases: 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.
Pension Increases: Pension Increase 3
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.
Pension Increases: Pension Increase 4
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.
Timing of Pension Increases
Select from the drop-down list how the timing of pension increases should be applied. The options are:
- Continuous
- Review Date
If Review Date is selected then enter the day and month (DD/MM) the increase is paid in the Increase Date field.
Increase Date
If the Timing of Pension Increases has been set to Review Date then enter the day and month of the pension increase date. The date should be in DD/MM format.
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 As
Click the Save As button to save with a new parameter description.
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.