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Deferreds Basis: TVBasis

Same as Valuation Basis Cash Flows

  • TVBasis Same as Valuation Basis Cash Flows
  • TVBasis Same as Valuation Basis Interest Rates
  • TVBasis Same as Valuation Basis Increase Rates
  • TVBasis Same as Valuation Basis Spouse Parameters

Transfer assumptions can be set to always be the same as the Valuation Basis i.e. either one or more of the following:

  • cash flow parameters (capitalised or spread)
  • interest rates
  • increase rates
  • spouse parameters (proportion married, age difference)
  • member’s pre retirement mortality
  • member’s post retirement mortality
  • spouse / partner’s post retirement mortality

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.

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.

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.

Spouse Parameter Set

Spouse Parameter Set is a Scheme Global parameter which groups the Spouse variables. This can be created by using either the Create Globals function or using the Add/Edit Spouse Parameters button. Once created, these parameters can be edited without going back into the Basis similar to other global parameter sets.

Spouse Definition

Select from the drop-down list how to value the spouse’s pension on death after retirement. The options are:

  • Retirement
  • Death

If Retirement is selected, SuperVal will use the proportion married as at the member’s age at retirement.

If Death is selected, SuperVal will use the proportion married as at the member’s age at death.

For more information please see the Infocus Document relating to Proportion Married.

Proportion Married Table

  • TVBasis Male Transfers Proportion Married Table
  • TVBasis Female Transfers Proportion Married Table

Double click to select the table containing the proportion married for members at each age.

In ongoing runs, these fields are used to determine the proportion of the member’s benefit paid to a spouse or partner on death in service (actives only), death in deferment or death after retirement. The field Spouse’s Definition enables you to select how the proportion married is applied.

In PPF runs the fields in the Scheme PPF parameters can be used to enter the proportion married separately for male and female spouses and male and female partners.

If 90% of members are assumed to be married at all ages then enter a table containing 0.9.

More information is available in the Infocus Document called Proportion Married.

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.

Proportion Married

  • TVBasis Male Transfers Proportion Married
  • TVBasis Female Transfers Proportion Married

The proportion married can be expressed as a single percentage across all ages.

Spouse's Age Difference Table

  • TVBasis Male Transfers Age Difference Table (m-f)
  • TVBasis Female Transfers Age Difference Table (f-m)

This field is used to enter an age-dependent table if the age difference between a member and their spouse varies according to the member’s age. It is used when valuing death benefits prior to retirement and contingent annuities on death after retirement. For pensioners death benefits prior to retirement may occur when the Benefit Commencing Age is after the member’s current age.

Double click to select the AD table that contains the relevant data. The table should contain the values for Member’s Age minus Spouse’s Age ie if Members are 3 years older than their spouse enter 3.

This field is only available to some users.

Spouse's Age Difference

  • TVBasis Male Transfers Age Difference (m-f)
  • TVBasis Female Transfers Age Difference (f-m)

This field is used to set an age difference between a member and their spouse that is identical for all members. It is used when valuing death benefits prior to retirement and contingent annuities on death after retirement. For pensioners death benefits prior to retirement may occur when the Benefit Commencing Age is after the member’s current age.

Enter the relevant value containing Member’s Age minus Spouse’s Age ie if Members are 3 years older than their spouse enter 3.

If you wish to use an Age Rating that varies with the member’s age then leave this field blank and the Age Difference Table will become available. (This functionality is not available for PPF runs or for the annuity calculators.)

The Age Difference Table field is only available to some users.

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.

Add/Edit Decrement Rates

Add or Edit any Spouse 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.