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Consolidation: Amortisation

Past Service Surplus/Deficit Amortised

  • Amortisation Past Service Surplus/Deficit Amortised
  • Amortisation OR Surplus/Deficit Amortised £

The user can specify up to two different amortisation schedules for either the past service surplus or deficit. Within each schedule the user can choose one of two different methods of spreading. The options are:

  • as a percentage of the total
  • as a level amount.

If using the percentage field, enter the percentage of the surplus/deficit to be amortised.

If using the level amount, enter the amount of surplus/deficit to be amortised.

Only one of these options can be specified for each schedule.

Amortisation Method

For each of the surplus/deficit schedules set up, the user can choose one of three methods to amortise. The options are:

  • a Percentage of Salaries
  • a Level Amount
  • a Fixed Amount plus Accrued Interest on the remaining surplus/deficit.

Check the box to select which to use.

Amortisation Term

Enter the term (in years) over which the contributions to amortise the surplus/deficit are to be made.

Amortisation Interest Rate

This is the annual rate at which the amortisation contributions will be discounted. This will typically be the same as the discount rate.

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.

Use QSM Settings

User can select the parameters that are suitable for Quick Scenario Modelling i.e. selecting this button will set ALM/LDI Interface to "Exclude Left Service" and tick "Retain Category Splits in Database".

Run

Click the Run button to run the calculations.

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.