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Pension Benefits Capitalised or Spread

This and the other Cash Flow Parameters only affect the Cash Flow Summary page in the Excel Output/Consolidation Output. They do not have any effect on the Valuation Results.

Select from the drop-down list the option to use. The options are:

  • Capitalise
  • Spread

If Capitalise is selected the output will show the cashflows assuming the benefits are capitalised at the point of first payment.

If Spread is selected the output will show the cashflows as they become due.

However, the Death in Deferment Liability shown will always be the capitalised value of the payments. The user can choose the point at which the Death in Deferment Liability is shown in the Cash Flows summary in the Death in Deferment Method field.

In addition, if Spread is chosen for Actives or Deferreds, the user will be required to specify at which point the Underpin Liability is capitalised in the Underpin Method.

When running a DAB method valuation, this field must be set to Capitalise.