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Financials: Revaluation

Variable Name

Scheme Constants can be used to define loading factors that change with the financial basis for the scheme.

Enter a name for the Global Financial Parameter or the Constant being defined.

This name will be used to select the Global Financial Parameter in the individual basis files. The name should be generic i.e. InterestRate1 so that it remains relevant if the value changes at a future valuation date. The purpose of these variables is to enable a simple method of making changes to assumptions without the need to modify all category sets.

The Variable Name must not be the same as a Variable Name already used in SuperVal system. Using an existing Variable Name may cause a system crash or result in incorrect results for the calculations.

To add or delete a Global Financial Parameter right click over the numbers to the side of this table. To change a Global Variable Name click once over the existing name until the name is highlighted.

Variable Value

Enter the Global value for the variable or constant.

The rate can be input as either a single rate, a vector or a yield curve.

For a single rate, enter the value. For 6% enter 6 and not 0.06.

For a vector, enter the appropriate rates i.e. if 3 4 5 was entered then the rate of increase would be 3%, 4% and 5% in the first and second year after the valuation date and 5% thereafter.

For a yield curve, right click to choose the CSV file containing the relevant data. The CSV file should contain one row with a maximum of 200 numbers i.e. 200 columns. The CSV file should be saved in the input folder.

Deferreds Cap

Enter a scalar value for the caps.

Global Collar

Enter a scalar value for the collars.

Grouping

Enter a name for the grouping.

Variable Description

Enter a description for the Global Financial Parameter i.e. Interest Rate for ex ABC Staff or the Constant being defined. Where possible the description should be generic so that it remains relevant if the absolute value of the variable changes at a future valuation date.

Deferreds Cumulative Capping

Check this option if the Capping applied to Revaluation Rates is a cumulative cap applying over the entire period of deferral such as in the legislated Section 52 Revaluations.

Deferreds Timing of Reviews

Specify the Timing of the Revaluation Review Dates. You can choose from the following:

  • Continuous
  • Review Date
  • Anniversary of Leaving
  • Section 52 Order
  • Tax Years

Note that the Tax Years definition will cease Revaluations at SPA and thus may not be appropriate for non-GMP Revaluations.

The Section 52 Order has calculations specific to the Section 52 Orders resulting in two changes in Revaluation during a Valuation Year ie at the earlier of the 1 January and the anniversary of Date of Leaving and then also when both dates have been passed.

Deferreds Review Date

Enter the day and month of the Deferreds revaluation date. The date should be in DD/MM format.

Note that some methods of Revaluation have a Review Date fixed by the system:

  • Tax Years on 06/04
  • Section 52 Order on 01/01 (and the anniversary of Leaving).
  • Anniversary of Leaving

Deferreds First Year Revaluation

Select from the drop-down list how the revaluation in the first year should be determined. The options are:

  • None
  • Proportional
  • Full

If "None" is selected, no revaluation is valued at the first review date or opportunity to pay revaluations following benefit commencement.

If "Proportional" is selected, then a proportional pension increase is valued at the first review date or opportunity to pay revaluations following benefit commencement.

If "Full" is selected, then a full revaluation is valued at the first review date or opportunity to pay revaluations following benefit commencement.

Deferreds Past Revaluation Rate(s) Factor Set

Specify the Factor Table containing the Past Annual Revaluation Rates applied to this tranche of PUP receiving this revaluation rate.

This will be required where

  • the PUPs or GMPs provided in the data are as at the Leaving Date
  • the Revaluation Rate has Cumulative Capping such as in Section 52 Order Revaluations
  • in certain cases where the GMP may receive different rates of Revaluation according to when it becomes payable

Note that Factor Tables containing Past Revaluation Rate have changed format in 9.31 and later versions. Instead of the cumulative Index required previously, the actual rates of Revaluation credited at annual intervals are required. This changed was required because of the Cumulative Capping on the Section 52 Revaluations and should make the checking of Past Revaluations assumption much easier. In the short term, Factor Tables containing Indexes will be accepted and the rates will be determined from the Index.

Adding or deleting Columns

Right-clicking on a column heading presents a menu with the following options which allow you to expand or reduce the number of columns of data to be entered:

  • Add a new column(s) to the right of the grid;
  • Insert a new column at the position of the cursor; and
  • Delete the current column at the position of the cursor.

Grid editing options

Right-clicking on the Top Left Corner of the grid displays a menu which allows you to set the following Grid Editing Options:

  • Editing of a cell can be invoked by either clicking on the cell or by pressing F2 when the cell is active (Clicking will only change the current active cell); and
  • determine the cursor movement once editing is complete to be either to the next cell down, the next cell to the right or to stay in the current cell.

Edit Revaluation Rate

Clicking the Edit Revaluation button allows you to set the new Parameters required for the revaluation of Deferreds PUPs.

The Revaluation Rate to be edited will be the row where the cursor is located. If multiple rows are selected or the cursor is in its "default position" (top-left corner), you will be shown a selection box to select the Revaluation Rate you wish to edit.

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.