Spreading Dates
Spreading Method For Prospective Element
If the benefits are not insured, this field is used to determine how the accrual of either a salary related or a prospective pension or cash benefit is spread. Select from the drop-down list which of the following options to use:
- FAS
- Projected Unit
For CC3 users the selection on the Death Pen Tab will be used for both pension and cash benefits paid on death.
The FAS option values the full prospective element whenever the member
is assumed to exit, then spreads this over the period from Spreading
Start Date to Spreading Finish
Date. For normal FAS values, Spreading Start
Date should be set to DJF and Spreading Finish Date to LDATE.
The Projected Unit option values the full prospective element for
those who exit within the control period only. For those who do not exit
during the control period, only the benefit based on accrued service is
valued. Spreading dates are ignored. For attained age valuations,
SuperVal values the full prospective element for all future exits, i.e.
the control period is infinite.
Not all options are available to all users.
Spreading Start Date for Spouse's DIS Benefits
Pension Benefits
If the Spouse’s Death Benefit is not insured and is either based on Salary, Prospective Pension or Prospective Table then the user should select whether to accrue benefits using the PUC Method or the FAS Method in the Spreading Method.
If the FAS Method is chosen then select from the drop-down list the Spreading Start Date. The benefit will be assumed to accrue uniformly between the Spreading Start Date and the Spreading Finish Date and is split between past and future service on the same uniform basis.
If the pension is % of salary then the whole of the benefit is apportioned between past and future service liability.
For the Prospective Pension or the Prospective Table it is the prospective element only that is spread. (The pension from service prior to the valuation date will be valued as past service. The pension from service between the valuation date and the point of exit will be future service liability. The pension from service between point of exit and NRD is spread between the dates entered.)
The past service liability will be equal to:
The future service liability will be equal to:
where:
- SSD = Spreading Start Date
- SFD = Spreading Finish Date
- VDATE = Valuation Date
Lump Sum Benefits
If the Lump Sum on Death Benefit is not insured and is a multiple of Salary then the user should select whether to accrue benefits using the PUC Method or the FAS Method in the Spreading Method.
All of the benefit will be assumed to accrue uniformly between the Spreading Start Date and the Spreading Finish Date and is split between past and future service on the same uniform basis.
The past service liability will be equal to:
The future service liability will be equal to:
where:
- SSD = Spreading Start Date
- SFD = Spreading Finish Date
- VDATE = Valuation Date
Not all options are available to all users.
Spreading Finish Date for Spouse's DIS Benefits
Pension Benefits
If the Spouse’s Death Benefit is not insured and is either based on Salary, Prospective Pension or Prospective Table then the user should select whether to accrue benefits using the PUC Method or the FAS Method in the Spreading Method.
If the FAS Method is chosen then select from the drop-down list the Spreading Start Date. The benefit will be assumed to accrue uniformly between the Spreading Start Date and the Spreading Finish Date and is split between past and future service on the same uniform basis.
If the pension is % of salary then the whole of the benefit is apportioned between past and future service liability.
For the Prospective Pension or the Prospective Table it is the prospective element only that is spread. (The pension from service prior to the valuation date will be valued as past service. The pension from service between the valuation date and the point of exit will be future service liability. The pension from service between point of exit and NRD is spread between the dates entered.)
The past service liability will be equal to:
The future service liability will be equal to:
where:
- SSD = Spreading Start Date
- SFD = Spreading Finish Date
- VDATE = Valuation Date
Lump Sum Benefits
If the Lump Sum on Death Benefit is not insured and is a multiple of Salary then the user should select whether to accrue benefits using the PUC Method or the FAS Method in the Spreading Method.
If the FAS Method is chosen then select from the drop-down list the Spreading Start Date. All of the benefit will be assumed to accrue uniformly between the Spreading Start Date and the Spreading Finish Date and is split between past and future service on the same uniform basis.
The past service liability will be equal to:
The future service liability will be equal to:
where:
- SSD = Spreading Start Date
- SFD = Spreading Finish Date
- VDATE = Valuation Date
Note: Not all options are available to all users.
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.