Spreading Finish Date for Spouse's DIS Benefits
Pension Benefits
If the Spouse’s Death Benefit is not insured and is either based on Salary, Prospective Pension or Prospective Table then the user should select whether to accrue benefits using the PUC Method or the FAS Method in the Spreading Method.
If the FAS Method is chosen then select from the drop-down list the Spreading Start Date. The benefit will be assumed to accrue uniformly between the Spreading Start Date and the Spreading Finish Date and is split between past and future service on the same uniform basis.
If the pension is % of salary then the whole of the benefit is apportioned between past and future service liability.
For the Prospective Pension or the Prospective Table it is the prospective element only that is spread. (The pension from service prior to the valuation date will be valued as past service. The pension from service between the valuation date and the point of exit will be future service liability. The pension from service between point of exit and NRD is spread between the dates entered.)
The past service liability will be equal to:
The future service liability will be equal to:
where:
- SSD = Spreading Start Date
- SFD = Spreading Finish Date
- VDATE = Valuation Date
Lump Sum Benefits
If the Lump Sum on Death Benefit is not insured and is a multiple of Salary then the user should select whether to accrue benefits using the PUC Method or the FAS Method in the Spreading Method.
If the FAS Method is chosen then select from the drop-down list the Spreading Start Date. All of the benefit will be assumed to accrue uniformly between the Spreading Start Date and the Spreading Finish Date and is split between past and future service on the same uniform basis.
The past service liability will be equal to:
The future service liability will be equal to:
where:
- SSD = Spreading Start Date
- SFD = Spreading Finish Date
- VDATE = Valuation Date
Note: Not all options are available to all users.