Deferreds Basis: RetPension
Spouse's Reversion: Death After Retirement
The field determines the proportion of pension paid to a spouse in the event of the member’s death after retirement (i.e. normal or early retirement). This can either be a fixed percentage for all members or a member specific percentage.
To value a fixed percentage for all members enter the figure here. For
50% enter 50.
To value a member specific percentage, select from the drop-down list
the data item containing the member specific spouse’s proportion. The
data item should be in the form of a percentage so for 50% enter 50.
Users will have the option to override this value on the PUPs Tab for a particular benefit.
Apply ERFs to Spouse's Pension
Check this box if the spouse’s death after retirement pension should be reduced to reflect the early retirement reduction factor applied to the member’s pension. Leave the box unchecked if the spouse’s death after retirement pension is based on member’s pension prior to application of any early retirement reduction factors.
Spouse's Pension Based on Pre-Commutation Pension
Check this box if the spouse’s death after retirement pension is based on the member’s pre-commutation pension. Leave the box unchecked if the spouse’s death after retirement pension is based on member’s post-commutation pension.
Retirement Age Parameter Set
- RetPension Male Retirement Factors Parameter Set
- RetPension Female Retirement Factors Parameter Set
Retirement Factor Parameter Set is a Scheme Global parameter which
groups the Male or Female Retirement Factor variables. This can be
created by using either the Create Globals function or using the
Add/Edit Retirement Factors button. Once created, these parameters
can be edited without going back into the Basis similar to other global
parameter sets.
Early Retirement Reduction Factor: Pension
- RetPension Male ERF1
- RetPension Male ERF2
- RetPension Female ERF1
- RetPension Female ERF2
This field allows the user to specify a set of early retirement reduction factors that apply to pension benefits. The user can specify 4 different sets of Early-Retirement Factors (actives) and 2 different sets of Early-Retirement Factors (deferreds). For actives these are:
- ERF1 for use with Revaluation Rates in deferments 1 and 3
- ERF1 for use with Revaluation Rate 2
- ERF2 for use with Revaluation Rates in deferment 1 and 3
- ERF2 for use with Revaluation Rate 2
For deferreds these are
- ERF1
- ERF2
Users without Late Retirement Tab
The rate table is typically an FX table and should contain non-zero
entries for ages at which members are assumed to retire. Please note
that SuperVal assumes exits prior to NRA occur half-way through the year
ie 0.5 years, 1.5 years etc after the valuation date. Exits at NRA occur
at the beginning of the year. This should be reflected in the early
retirement reduction factor tables used. Therefore, if the reduction is
4% simple per annum, and the NRA is 65, the table should be defined as
follows:
| Age | Rate |
|---|---|
| 65 | 1.00 |
| 64 | 0.98 |
| 63 | 0.94 |
| 62 | 0.90 |
| Etc. |
Benefits of members above NRA can be adjusted to reflect late payment by adding a factor in ages above NRA i.e. 1.04 at age 66 for a 4% increase. Please note members above NRA will be assumed to retire at the valuation date.
Where this has been left blank, SuperVal will assume an Early-Retirement Factor of 1.
Double-click to select from a list of available rate tables.
Users with Late Retirement Tab
The rate table is typically an FX table and should contain non-zero
entries for ages at which members are assumed to retire. Please note
that SuperVal assumes exits prior to NRA occur half-way through the year
ie 0.5 years, 1.5 years etc after the valuation date. Exits at NRA occur
at the beginning of the year. This should be reflected in the early
retirement reduction factor tables used. Therefore, if the reduction is
4% simple per annum, and the NRA is 65, the table should be defined as
follows:
| Age | Rate |
|---|---|
| 65 | 1.00 |
| 64 | 0.98 |
| 63 | 0.94 |
| 62 | 0.90 |
| Etc. |
If a Late Retirement Age is specified SuperVal will only use the table specified here up to NRA. Members above NRA will be assumed to retire in accordance with the ER/LR decrement specified on the Demographic Tab. Please note all retirements after NRA occur at the beginning of the year. Their benefits above NRA will be adjusted using the Late Retirement Factors specified on the Late Retirement Tab. Where this has been left blank, SuperVal will assume an Late Retirement Factor of 1.
Where a Late Retirement Age has not been specified, members above NRA will be assumed to retire immediately using the ERFs specified here. Where this has been left blank, SuperVal will assume an Early-Retirement Factor of 1.
Double-click to select from a list of available rate tables.
Related
Selecting rate tables
Rate tables can be selected by any of the following methods:
- Right-click on the field for a list of appropriate Rate Tables. For a field that will accept more than one type of Rate Table (e.g. Miscellaneous Tables), the list will be restricted to the current Table Type specified in the field – if you wish to see all allowable Rate Tables, delete the Table Type from the field before clicking; or
- Double Clicking on the field will produce the Rate Tables form where Rate Tables can be viewed (numerically and graphically) and Rate Tables can be added or edited. A Rate Table can be selected by pressing the Select button or double clicking on the Rate Table description in the tree; or
- the list of allowable Rate Tables can be scrolled through by
pressing the
<or>keys. The description of the Rate Table to the right of the field will change as each new Table is selected.
Linearly Interpolate Retirement Factors for mid-point Exit values
- RetPension Linearly Interpolate Male Retirement Factors for mid-point Exit values
- RetPension Linearly Interpolate Female Retirement Factors for mid-point Exit values
When checked, the system will linearly interpolate factors for mid year exits such as early retirements and deaths. For Normal Retirements, the system will apply no interpolation. If unchecked, the system will use the factor specified at the age nearest rounded down for mid year exits as previous versions have done.
Add/Edit Retirement Factors
Add or Edit any Retirement Factor parameter sets
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.