Quick Scenario: Benefits

Consolidation Database File

Select the database file containing the results to run the Quick Scenario Modeller on i.e. the original results in the graphs / output.

Consolidation SQL Server Database

Select the consolidation SQL server database file to be used for QSM

Type of Graph

The default is liabilities. Choose to view one of the following 7 options:

Liabilities – these are split into membership groups (actives / deferreds / pensioners) and past and future service
Waterfall Liabilities
Financial Position
Waterfall Financial Position
Cash Flows
Employer Contributions
Employer Funding Rate

Term

The term displayed for the cashflows i.e. in the graphs Cash Flows, Employer Contributions and Employer Funding Rate can be adjusted here to display the results for the term required.

Membership Groups

Select from:

All
Active
Deferred
Pensioner
Active / Deferred
Deferred / Pensioner
Active / Pensioner

Contributions

Contributions checkbox appears as an option if employee contributions have been included.

within the Actives basis. These will then be included within the cashflow graphs / output.

Expenses

Expenses checkbox appears as an option if expenses have been included when running the consolidation. These will then be included within the cashflow graphs / output.

Additional Liabilities

Additional Liabilities checkbox appears if additional liabilities have been included when running the consolidation. These will then be included within the cashflow graphs / output.

Cease Future Accrual after

User can input the future ceasing accrual period in this field. The default accrual period is 99 years i.e. gives the same results as the Attained Age Funding method.

Cashflows and liability amounts will decrease depending upon the number of years input here.

Adjust Future Accrual

Specify the term after which Future Accrual of Benefit Ceases.

Adjust Spouse Reversion

Specify the adjustment to Spouse / Partner's Reversion Percentage

Adjust Commutation Factors

User can specify an adjustment to the Commutation Factors used in cash commutation.

Adjust Commutation Rate

User can specify an adjustment to the Amount of Cash Commuted.

Adjust Cash on Top Amount (No Reduction of Past Service)

User can specify the adjustment(s) to Amount of Cash on Top. There will be no reduction to that from Past Service.

Capitalise Transfer Values at Exit

Users can choose whether Transfer Value Benefit cash flows are to be spread or capitalised at the date of Exit using the tickbox.

Adjust Transfer Values

Specify the adjustment(s) to Transfer Value Amounts

Adjust Retirement Transfer Proportions

Specify the adjustment(s) to Retirement Transfer Proportions

Capitalise Pensions

If Capitalise Pensions is ticked, benefits are capitalised at point of exit i.e. the cashflow becomes the present value of future cashflows as at the date of exit. Liabilities remain unchanged.

Expense/Profit Loading

If Capitalise Pensions box is ticked a loading can be input here to adjust the capitalised cashflow value, and hence the liabilities, allowing for a loading for expenses / profit .

Configure Roll-Forward

Configure Financial Assumptions for Roll-Forward Valuations i.e. whether discount rates / escalation rates and adjustments to these apply from Valuation Date or Roll-Forward Date.

Create Financials

A new set of Financial assumptions can be created for the changes that have been input in the Financial tab.

Dump Results

Selecting Dump Results in the bottom right of the screen will produce a TXT file.

This contains the:

adjustments to the financials/mortality
original / change in / revised liabilities, split by benefit type
revised cashflows, split into components (e.g. Ret Pen / Ret Cash / Death Pen / Death Cash)

Amortise Deficit

If amortisation is included when consolidating, then selecting Amortise Deficit will adjust the amortisation assumptions to amortise any surplus / deficit.

A new box will appear asking which amortisations are to be included:

Both Amortisations
Amortisation 1
Amortisation 2

and which of the two currently variable fields out of rate / term / amount (one has previously been chosen to be constant) is to change to amortise the surplus / deficit.

If Both Amortisations is chosen then a further box Shared will be displayed with a choice between sharing between the two amortisation methods equally or proportionally.

Configure Graphs

Choose type of bar chart for cash flows.

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.