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Contributions
and Funds
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See Options menu (Alt + P) for more
options.
Double click on any record to edit the details.
For each Fund Value a note can be stored
by double clicking the record.
Contributions can be deleted via the Amend window, by users with the necessary
rights.
ROR = rate of investment return earned over the period ending on the date
shown.
Proj Rate = Middle assumption to be used
for projections (see below).
Contributions
The type of contribution can be selected from
Employee, Employer, Member Over 75, Tax Relief and Non-relievable.
When entering a new contribution, there is
an option to show if it was an in-specie contribution, as well as the nature of
the asset and the asset value. This will be flagged when producing the report
to reclaim tax relief on the contribution.
For Anti Money Laundering purposes, the Source
of Funds can be stored with the date checks were completed and the fact that
evidence was obtained,
Contribution Warnings
On the Contribution Split screen, when
entering a contribution Omni checks whether the member has protection or
flexible drawdown. A setting can disable this
temporarily.
Deleting fund values that have already
been split has always been an area of concern, especially if subsequent fund
values have also been split (the program did not delete the subsequent splits).
The program now will only allow a fund value to be deleted if the fund splits
for that date have already been deleted.
Vested Fund Values
The vested fund is a separate sub-fund within the member's main
fund. The ‘pre 2006 vested
fund’ is the part of the vested fund that is derived from pensions that
were in payment at April 2006. It is necessary to keep separate records of the
fund value relating to pre 2006 vesting events and post 2006 vesting events.
The pre 2006 vested funds do not suffer extra BCE at age 75. The post 2006
vested funds do suffer that BCE.
To derive the separate sub-funds the
software needs details of the pension payments relating to the different
sources. In practice, the vested fund at 2006 may be drawn more slowly than the
post 2006 funds (to avoid or reduce the risk of the tax charge at 75. The idea
would be to take withdrawals from post 2006 funds first.
Middle Assumption for Projections
On the Fund Value screen (found by double
clicking a fund value record) the Middle Assumption for Projections can be
stored. This is determined by the user taking into account the nature of the
investments and the long term strategy. For instance, with all funds on
deposit, it might be set to 3%. When running the Pension Analysis program, it
will use this middle assumption, with the other assumptions being set 2% either
side.
If it is left at zero, the Pension
Analysis program will use the standard assumptions (5%, 7% and 9% in 2011).
Excel
If you select one of the fund values in
the left grid and then click the Excel button, a spreadsheet is produced
showing the split of the chosen fund value between the members and between the
unvested, vested arrangements etc.
See also – Contribution Tax Relief, Vesting
Events and Fund Splits - Vested Sub Funds