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Edit IndSlice: Slice

Slice Description

Up to 16 separate Benefit Slices can be specified. Slice 1 will always be used to describe future service. Slices 2 to 16 are used to describe past service.

Enter a description for the Benefit Slice being valued eg Pre Barber Benefit.

This description will appear on the results output.

The Alt Slices Tab will only be available if you have selected an option other than Ignore in the Alternate Slices Method field on the Main Tab.

The Ind Slices Tab will only be available if you have checked the box for Independent Slices on the Main Tab.

Service Start Date/Earliest Start Date

  • Slice Start Date
  • Slice Earliest Start Date

A service start date can be defined as the later of an item of data and a fixed date.

The Service Start Date for each Slice is entered here. Select from the drop-down list the data item containing the relevant data item. This will be used as the date when service for this Slice starts accruing unless an Earliest Start Date is also defined.

The user can define the Earliest Start Date that can be used for a particular Slice. Enter this date in the following date format DD/MM/CCYY. SuperVal will then take the later of these two dates to determine when service for this Slice starts accruing.

If valuing future service, the Service Start Date on Slice 1 should be Valuation Date and the Earliest Start Date should be blank. If you have no future service liabilities, please ensure these fields are left blank on Slice 1.

If the Slice is being used to value added years or a fixed pension then these field can be left blank.

The Earliest Start Date will not be used for future service benefits on Slice 1 when CARE benefits are being valued.

Service Finish Date/Latest Finish Date

  • Slice Finish Date
  • Slice Latest Finish Date

The Service Finish Date for each slice is entered here. Select from the drop-down list the data item containing the relevant data item. This will be used as the date when service for this Slice stops accruing unless a Latest Finish Date is also defined.

The user can define the Latest Finish Date that can be used for a particular Slice. Enter this date in the following date format DD/MM/CCYY. SuperVal will then take the earlier of these two dates to determine when service for this Slice stops accruing.

If valuing future service, the Service Finish Date on Slice 1 will always be Leaving Date. The Latest Finish Date could be used to cease accrual at a fixed date in the future. If you have no future service liabilities, please ensure these fields are left blank on Slice 1. The Latest Finish Date will not be used for future service benefits on Slice 1 when CARE benefits are being valued.

If the Slice is being used to value added years or a fixed pension then these field can be left blank.

The Latest Finish Date on the Offset Slice must be specified as this is used to identify the date at which GMPs stopped accruing, for some Cash Commutation or death in deferment options.

Service Rounding Override

The Company Service and Scheme Membership used by SuperVal can be rounded in a number of different ways. The entry on the Membership Tab will be used unless an Override is specified on a particular Slice.

Select from the drop-down list one of the following options:

  • Exact Days
  • Months Rounded Down
  • Nearer Months
  • Months Rounded Up
  • Years Rounded Down
  • Nearer Years
  • Years Rounded Up
  • Complete Tax Years

Note, service is rounded on a Slice by Slice basis and there is no rounding for total service. We recommend that you use exact days for the future service slice 1 if you are intending to use the prospective pension for any benefits.

Care must be taken to avoid rounding down every slice so causing the pension to be understated.

Added Years

This field is used to define the number of Added Years either where these are fixed for all members or a member specific amount. To enable it ensure the Start Date for this slice is blank. Added Years might have arisen from an Augmentation exercise or a Transfer-In to the scheme.

If the number of Added Years granted is the same for all members, enter the number of years granted in years (and part) years i.e. for 5 years and 6 months enter 5.5.

If the number of years varies per member, then select from the drop-down list the data item containing the appropriate data. The data item should contain the number of complete (and part) years granted to each member.

Note, the data should be in terms of years (or fractions of years). If you have the augmentation in months then this should be amended as part of a pre-process using the 'Input File Editor Calculator'.

Payment Start Age

  • Slice Male Payment Start Age
  • Slice Female Payment Start Age

When valuing Independent Slices, the user can choose a start age for the payment of the benefit.

To value a cash benefit, the Payment Start Age should be equal to the Payment End Age.

Payment End Age

  • Slice Male Payment End Age
  • Slice Female Payment End Age

When valuing Independent Slices, the user can choose a end age for the payment of the benefit.

To value a cash benefit, the Payment Start Age should be equal to the Payment End Age.

Revaluation in Deferment

This is the rate at which the benefits from this Slice will increases in deferment i.e. between date of leaving active service and NRA.

Select from the drop-down list which of the 3 revaluation rates previously defined should be used. The options are:

  • Rate 1
  • Rate 2
  • Rate 3

The rate entered will be applied to all types of benefit entered ie normal accrual, added years and a pension data item.

The values of these three deferred revaluation rates are entered on the Financial Tab.

Pension Increases in Payment

Once in payment, the pension from this Slice or PUP, can be set to increase at one of four different increase rates. Select from the drop-down list the appropriate rate. The options are:

  • Main Pension
  • Special Pension
  • Pension Increase 3
  • Pension Increase 4

Pension Increases Pre Start

This field is used to set a pension increase that will apply from the date the member retires (where this is before Payment Start Age) and the Payment Start Age. Select from the drop-down list the appropriate rate. The options are:

  • Main Pension
  • Special Pension
  • Pension Increase 3
  • Pension Increase 4

Include In Underpin

Any Underpin to apply is defined by the Underpin Contribution Parameters on the Contributions Tab. Check this box if the benefit from this Slice should be included in the comparison against the Underpin benefit. Leave this box unchecked if the benefits from this Slice should not be included in the comparison against the Underpin benefit.

Benefit Basis

Select from the drop-down list whether the benefits described on this Slice are a Final Salary benefit or Career Average Revalued Earnings (CARE) benefit.

If Final Salary is selected then the benefit calculated from this Slice will increase in line with salary increases until retirement or earlier exit. The salary increase used will be taken from the Salary Increase Rate on the Financial Tab unless this has been overridden by the Salary Increase Override field on the Salary Tab.

If CARE is selected then the benefit calculated from this Slice will increase in line with the CARE Revaluation Rate on the Financial tab. Note that for past service CARE Slices the pension amount as at the Valuation Date is needed and should be entered as a Fixed Pension in Tiers 1, 2 or 3.

Early/Late Retirement Pension Reduction Factors

  • Slice ERF Tables
  • Slice ERF/LRF Tables

Select from the drop-down list which of the Early/Late Retirement Factor Tables to apply to the benefit arising from this Benefit Slice. (The Early-Retirement Factors are defined on the Ret Pension Tab. The Late Retirement Factors are defined on the Late Retirement Tab.) The options are as follows:

  • ERF1/LRF1 (Revaln 1 + 3) or ERF1/LRF1 (Revaln 2)
  • ERF2/LRF2 (Revaln 1 + 3) or ERF2/LRF2 (Revaln 2)

Spouse's DAR Override

The user has the option to enter an override for the Spouse’s Death after Retirement Percentage entered on the Ret Pension Tab.

Either enter the fixed percentage override as a percentage i.e. for 50% enter 50 rather than 0.5.

If you do not wish to use this option then leave blank.

Tier 2 Benefits Defined/Tier 3 Benefits Defined

  • Slice Tier 2 Benefits Defined
  • Slice Tier 3 Benefits Defined

Check the Tier 2 Benefits Defined box if you wish to define a second Tier of benefits. Leave unchecked if there is no additional Tier of benefits. If checked, the user will have the option to check the Tier 3 Benefits Defined Box to define a third Tier of benefits.

The benefits defined on either the second or third Tier can be added. Alternatively, the user has the option to subtracted a previous Tier from the final Tier of benefits defined i.e. Tier 1 or the sum of Tier 1 and Tier 2 can be deducted from Tier 3, or Tier 1 can be deducted from Tier 2.

PPF NRA

  • Slice Male PPF NRA (Levy Valuations)
  • Slice Female PPF NRA (Levy Valuations)

On the Legislation Tab, enter the NRA to be attached to the GMP, which is converted in to excess pension, for PPF valuations.

Elsewhere, for Actives and Deferreds, select from the drop-down list which of the previously defined PPF NRAs applies to the pension or benefit slice. The PPF NRAs are specified on the PPF/Cap Tab.

For Pensioners enter the normal retirement age to be used as the PPF NRA in the PPF (S179 Levy) Valuation. The PPF NRAs are only used to determine the level of capping required. They do not override the Benefit Commencing Age. To allow for ill health retirements, use a sufficiently low age so that all members exceed this age i.e. 16. To allow for early retirement pensions, use an age such as 50.

PPF Service Period

PPF guidance, requires the user to show separately the Pre-1997 pension, post 6 April 1997 to 5 April 2009 pension and the Post 6 April 2009 pension.

Select from the drop-down list whether the pension is:

  • Pre-97
  • 97 to 09
  • Post-09

Previous Independent Slice

Move back to the previous Independent Slice. Select OK button to save any changes to the current Independent Slice.

Next Independent Slice

Move on to the next Independent Slice. Select OK button to save any changes to the current Independent Slice.

OK

When you have finished entering the relevant information, click the OK button to move to the next screen.

SuperVal will check that all of the required entries on the page have been made. If additional fields require data SuperVal will briefly show in red the label of the first of these fields found on the page.

Cancel

Clicking on the Cancel button allows you to return to the previous screen without saving any of your changes.