Overview
When
the Bulk SMPI module is installed, there is an ‘SMPI’ option on the
‘Member’ tab In XLReports.
Before
running the calculations, it is important that:
1.
you are
familiar with the SMPI legislation and TM1 (produced by the Actuarial
Profession).
2.
the
circumstances of every member is considered and, where necessary, the SMPI member data is entered. If
there is no SMPI member data entered for a member the investment return
defaults to 5% - it cannot be run with an absolute return of 0%.
3.
for all members, the fund value is entered at the effective date
(using Contributions and Funds)
and
4.
the fund
split calculated (or entered manually).
Running
SMPI calculations
This
option will produce a spreadsheet showing all selected members with the data
and results needed for the illustration. You should set up your template in
Word, use the spreadsheet as the data source and then merge the data into the
template.
The
calculations will all be run at the date selected.
You
can change the scheme status filters when running the program. All members
within the schemes selected are included unless they have been archived.
Vested
Funds. If any members have vested funds, only the unvested part of the fund is
used in the illustration.
The
calculated pension is rounded down to 3 significant figures.
Spouse’s
pension. If the member’s marital status is ‘Married’ or
‘Common law spouse’ then a 50% spouse’s pension is included.
If the spouse’s date of birth is stored then the spouse’s exact age
is used, otherwise it is assumed that the wife is 3 years younger than the
husband.
Data
Validity. Various checks are
carried out on the data. The data is deemed to be valid if the member’s
sex, date of birth and normal retirement date are all present, In addition, the
data is deemed not to be valid if the fund value is not split at the effective
date or the normal retirement date precedes the effective date.
If
the data is not deemed valid then no calculations are carried out but the
member is included in the results spreadsheet. Such members are shown at the
top of the results sheet so that they can easily be identified.
Results. The
results spreadsheet shows the main data and whether the data is valid. If the
data is valid, the projected fund value and pension are shown, plus the
assumptions used for each member and the ages at retirement.
From
April 2014, the pensions are illustrated on a level basis (i.e. no inflation
linking in payment) and the option for a lump sum is also shown.
Protected
Rights
If
a member has unvested protected rights, the projection will include a 50%
spouse’s pension for the protected rights part of the fund, even if the
member is not married, assuming that the potential wife is 3 years younger. The
protected rights information can now be ignored but it is left for backward compatability.
See
also: SMPI member data