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Fund
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Basic
Principles
Before splitting the fund between the
members ensure that all transactions for the period have been posted and
imported. Any transactions not imported will be ignored in the fund split and
produce incorrect results.
The fund value is split at the end of the day i.e. all transactions imported
for the day of the fund value will be taken into account. Any transactions
entered for the date of the previous fund split will be ignored. For example,
if the fund was last split on
If the fund value is split at a particular date and then bank transactions are
entered for an earlier date, the fund split will need to be deleted and
re-calculated.
If the rate of investment return exceeds
200%, Omni asks if you would like to continue. If you do so, the calculations
will continue and if the rate exceeds 300% then another warning will be given,
and so on. Rates of return of this magnitude are unlikely and so the data
should be checked very carefully.
Read full background before continuing.
Members
Leaving
When running the fund split, Omni will
check whether there has been a transfer out, annuity purchase or lump sum death
payment for any member. If so, Omni will ask whether that member has left the
scheme. If you confirm that the member has left, Omni will remove that member
from the fund split and just allocate the total fund value to the remaining
members. This avoids a small residual amount being allocated to a member who
has already left (e.g. because of delays in processing the cheque for the final
benefit).
Otherwise, Omni will treat the payment as
a partial transfer-out etc and allocate part of the remaining funds to that
member.
Deleting
Fund Splits
The split of the fund at any date can be
deleted using the ‘Delete All’ button. If the fund has also been
split at a later date, you will need to delete all of the later fund splits
before re-calculating the earliest spreadsheet. This ensures that the splits do
not conflict. Similarly, if a new fund value is entered in between fund splits,
then all later fund splits will need to be deleted. Deleting the fund split
will also delete the workings – you may wish to print or paste the
workings into a Word document for future reference.
If a fund value has been split, the total
value of the fund or the date of fund value cannot be amended unless the fund
split for that date has been deleted.
Vesting
Events (BCEs)
The print out shows the data used in the
calculation for each member. The section on vested
funds will only be shown if one or more members have vested funds.
Similarly the section for ‘pre 2006 vested fund’ will only be shown
if one or more members have vested funds.
It is intended that the total fund is
valued and the fund is split on the day before each BCE (Vesting Event) because
a fund value is normally calculated at the end of the day and the value is
needed before the BCE can be processed. However, if a BCE is stored on the same
day as the fund is being split, Omni will ask you whether the BCE should be
included in the fund split or not. If the fund split si then stored, Omni will
record whether that BCE was included or not. When the next fund split is run,
Omni will exclude the BCE if it was included in the previous fund split and
vice versa (before v12.3 you will asked about the BCEs on the final date of the
previous fund split and so you will have to check the workings of the previous
fund split).
If any member has funds that were vested
prior to April 2006, it is important that you ensure that the ‘pre 2006
part’ of each pension payment has been stored. See also – Pensions Data
The workings and results of the fund split
are stored and can be accessed using the ‘Workings’ button on the
‘Fund Split Screen’ – accessed by double clicking and
member’s fund on the ‘Contributions and Funds’ screen.
Transfers in drawdown are shown as
separate sub-funds in the fund splits. See also – Transfers in Drawdown
– Fund splits
Additional payments received after a
Transfer In has been fully processed are explained in Extra
Transfers In.
If the net pension is paid separately from
the PAYE then the fund split will allow for PAYE
creditors.
Fees can be allocated to specific members
if they are not met in the normal way from the common fund – Allocated Fees.
Protected rights can be tracked with
separate vested and unvested subfunds - Protected
Rights – but this is no longer a requirement and there is a setting to allow the tracking of protected rights to be
turned off.
LTA tax charges and death benefits are
allowed for – death benefits and taxes.
The fund split screens that were used
before April 2006 (including the LPI part, AVCs, retained benefits etc) can be
viewed on the Pre 2006 menu. See also – Pre
2006 Functions