Quick Scenario: Funding

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.

Adjust Future Service Funding Rate

If Adjust Future Service Funding Rate boxed is ticked then the employer future service funding rate is adjusted to allow for the changes in assumptions. The impact of this can be seen in the graphs Employer Contributions and Employer Funding Rate.

Control Period

If Adjust Future Service Funding Rate boxed is ticked then the control period can be changed; the impact on the employer future service funding rate can then be seen in the graphs Employer Contributions and Employer Funding Rate.

Amortisation Constant

If amortisation is included within the consolidation file, the rate, term or amount can be kept constant.

The field chosen i.e. First Year Contribution, Term or Deficit / (Surplus) Amortised is greyed out and then changing one of the remaining two alters the other appropriately. For example: if the term is kept constant, the rate can then be adjusted and the deficit / surplus amortised calculated.

Contribution Rate

If amortisation is included within the consolidation file, the rate, term or amount can be kept constant.

The field chosen i.e. First Year Contribution, Term or Deficit / (Surplus) Amortised is greyed out and then changing one of the remaining two alters the other appropriately. For example: if the term is kept constant, the rate can then be adjusted and the deficit / surplus amortised calculated.

Control Period

If amortisation is included within the consolidation file, the rate, term or amount can be kept constant.

The field chosen i.e. First Year Contribution, Term or Deficit / (Surplus) Amortised is greyed out and then changing one of the remaining two alters the other appropriately. For example: if the term is kept constant, the rate can then be adjusted and the deficit / surplus amortised calculated.

Amortisation Term

If amortisation is included within the consolidation file, the rate, term or amount can be kept constant.

The field chosen i.e. First Year Contribution, Term or Deficit / (Surplus) Amortised is greyed out and then changing one of the remaining two alters the other appropriately. For example: if the term is kept constant, the rate can then be adjusted and the deficit / surplus amortised calculated.

Deficit/(Surplus) Amortised

If amortisation is included within the consolidation file, the rate, term or amount can be kept constant.
The field chosen i.e. First Year Contribution, Term or Deficit / (Surplus) Amortised is greyed out and then changing one of the remaining two alters the other appropriately. For example: if the term is kept constant, the rate can then be adjusted and the deficit / surplus amortised calculated.

Amortisation Method 1

Funding Amortisation Method 1
Funding Amortisation Method 2

If amortisation has been included within the consolidation there is a choice of four amortisation methods:

Percentage of All Members’ Salaries
Percentage of Current Members’ Salaries
Level Amounts
Fixed Amounts plus Accrued Interest

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.