Vested Sub Funds

The amounts of the vesting events are taken into account in the calculation of the fund split to determine the Vested Funds. The vested funds are a separate sub-fund within the member's main fund.

The vesting events that are relevant to the fund split are those with type ‘Lump sum’, ‘Drawdown Fund’ and ‘Scheme Pension’.

When the fund split is calculated, the program finds the vested fund at the beginning of the period, all the relevant amounts vested in the period and the lump sum and pension payments made in that period. In then applies the overall rate of investment return obtained on the fund to find the vested funds at the end of the period.

The vested funds are stored in the fund split table under 'Members, Contributions and Funds'.

There is no need to set up separate member records for the active and the pensioner parts of a member's fund.

If a Vesting Event with a type of Scheme Pension is entered, the fund split will not move the funds automatically. Generally a scheme pension will involve moving funds from a member’s vested funds to a general or unallocated fund. This can be done using Internal Transfers or a manual adjustment to the fund split records.

Conversion of Data in April 2006

Prior to April 2006 the Vested Sub-funds were not stored. At April 2006, a program was run to copy the total fund value to the Vested Fund and the Pre 2006 Vested Fund for certain members. The members involved were those with Member Status of ‘Pensioner’, ‘Annuity for part benefit’, ‘Pensioner-drawdown’, ‘Spouse receiving pension’ and ‘Lump sum taken but pension deferred’. When carrying out the first fund split after April 2006, this data should be checked carefully to ensure that the processing was applied to the correct members and whether any adjustments are needed.

If the fund split prior to April 2006 is deleted, then the Vested Funds will need to be re-entered manually.

See also - Vesting Events and Fund Splits