Annuities

Annuity payments

Create the following accounting transactions for each annuitant:

Gross payee amount

Tax amount

PAYE

PAYE arrears

SITE

SITE arrears

Voluntary tax

Third party payment

Recovery of deductions overpaid

Recovery of annuities overpaid

Create the following reversal accounting activities for annuities overpaid:

Negative Annuity:

Negative Deduction:

Negative Tax

* For each annuity run, sum all of the PENSIONDED accounting activities for all of the payments per payment schedule, i.e. per scheme, for which the payee name is the same.

Create the following accounting activity for the total:

Net payee amount

EFT’s / Cheques

*These accounting activities must be set-up with the money movement indicator set, which will result in each transaction being written automatically to the EFT file or the cheque file, depending on the payment method on the payee details.

Foreign drafts

If the payment method on the membership payment detail is FOREIGN DRAFT, create the following accounting activity in place of the MEMPENPAID accounting activity:

When the annuity payment run is processed, if the payment method is FOREIGN DRAFT and the base currency on the membership payment detail record is not equal to the currency for the scheme to which the membership is linked, the following accounting activities will be created for the scheme currency amount:

-     MEMPENPAYBL

-     MEMPENPAIDFD

For these type of payments, the fund accounting rule linked to the MEMPENPAIDFD Accounting Activity is the following:

-     DR  PENSIONPAYBL

-     CR  PENCONTROL

The existing rule is DR PENSIONPAYBL / CR BANK but the payments will be made out of global payments bank account and will only be paid out of the scheme's bank account when the amount is paid to global payments.

When the confirmation list is received from global payments, the scheme currency amount will be reconciled to the scheme currency (GBP) on the foreign draft report.  If there are any differences, a manual accounting activity journal must be processed for the difference with one of the following accounting activities, depending on whether the amount on the global payments list is less than or greater than the scheme currency amount on the foreign draft report:

Global payment list greater than foreign draft schedule:

Global payment list less than foreign draft schedule:

When the schedules have been balanced, the total amount paid out of the global payments bank account must be paid into the global payments bank account using the following accounting activity per bank and with the deal number and exchange rate captured in the deal number and exchange rates fields respectively:

Bureau Focus payments

For each annuity payment for which the payment method is BANK TRANSFER, create the following accounting activity:

For each annuity run sum all of the MEMPENBNKTRF accounting activities for all of the payments per payment schedule, i.e. per scheme.

Create the following accounting activity for the total:

The money movement indicator must be set to N.

Total of all annuitants

Create the following accounting transactions for the total of all annuitants:

Gross payee amount

Tax amount

Accrual of suspended annuities

Gross suspended annuity amount

Total of suspended annuities

Re-instated annuitants

Gross amount of the arrears

Total of arrears

Payments advanced

Where a cheque payment is made to a pensioner who was not paid in the monthly annuity process (e.g. because he had not returned the certificate of existence in time), the following manually initiated accounting activity must be used:

The amount advanced must be captured on the annuitant's record as an ad-hoc deduction.

When the following month's annuity run is processed, the following accounting activities must be produced for the ad-hoc deduction:

ACB rejections

For more information on the accounting activities generated by the payment run, refer to

Supplements

Accounting Activities Generated by the Payment Run