This section sets out the various steps that need to be followed when launching an annuity product. These processes and activities have been explained in greater detail elsewhere in the manual.
For all annuity products (i.e. annuity-only products and products with live members and annuitants) the following items need to be captured, depending on the requirements of the products:
Add the following INCOME TYPES:
- under the global type of MED, set up a global group of MEDICAL AID
- under the global type of ATY, set up a global group of CONTRIBUTIONS
Refer to
System Setup
Global Data
Global Type
Add the following GLOBAL PARAMETERS:
- dependant age limits, where they are applied across products.
Refer to
Infrastructure
System Data
Parameters
Global Parameters
Add the following TERRITORY PARAMETERS:
- LIV ANNUITY MIN (living annuity minimum annual % of assets)
- LIV ANNUITY MAX (living annuity maximum annual % of assets)
- TAX YEAR END M (month of tax year end)
Refer to
Infrastructure
System Data
Parameters
Territory Parameters
Add an administrator branch for each group of products linked to a bank account
Refer to
Infrastructure
System Entities
Administrator Structure
Add a bank account for each administrator branch
Refer to
Infrastructure
System Entities
Bank Structure
Supplements
Calculation of Monthly PAYE for Annuities
To launch an annuity product, the following update types need to be processed:
- DETAILS
- PARTICPATE ER
- REGISTRATIONS
- CONTACT PERSONS
- BANK ACCOUNTS
- INVESTMENTS
- MBRSHP GRP
- INCOME
- EXPENSES
- SERVICE / FEES
- FIN PRD CAL
- BENEFIT RULES
- ACC RULE SET
- BANK ACC RULE
- DIARY
Refer to
Product Launch Requirements
Product Update
Note:
To set up a holding fund, all that is required is the product detail. The product must be set up with a type of product of ANNUITY FUND and pooling status of HOLDING FUND. It can be linked to an existing principal employer (corporate client) or you can set up a new one.
Refer to
Product Launch Requirements
Product Launch
Launching a Product
Besides the update types referred to above, the following specific coding may need to be done:
Link to a HOLDING FUND to add the product to a group of products for which the monthly annuity run will take place together.
Refer to
Product Launch Requirements
Associations
Association of Product
Annuity administrator branch bank account linked to the product. Refer to
Product Launch Requirements
Product Update
Product Update Type: Bank Accounts
Note:
When selecting a corporate client for deductions, ensure that bank account details have been captured for the corporate client if the payment method is EFT.
Dependant age limits where they are different from the global data
For products with medical aid deductions:
- medical aid membership groups (one for each medical aid plan or arrangement). Refer to
Product Launch Requirements
Product Update
Product Update Type: Membership Group
- global type of MED linked to the product with the following expense rule:
Formula Type = AMOUNT
Scale = SALARY (to enable a scale to be setup per annuity/salary band)
Refer to
Product Launch Requirements
Product Update
Product Update Type: Expenses
For products with living annuities, an INCOME TYPE of ATY (annuity contributions) must be linked. When the member becomes a living annuitant, the member's investments are consolidated into this income type.
Refer to
- Product Launch Requirements
Product Update
Product Update Type: Income
Spouse's and Dependants' Annuity
Set up a benefit product as follows and associate it via the benefit package to the benefit event of DEATH OF MEMBER AFTER RETIREMENT:
- Benefit Type = FAS
- Formula Type = PERCENTAGE
- Formula Applied To = ANNUITY AMNT
Lump Sum Death Benefit
Set up a benefit product as follows and associate it via the benefit package to the benefit event of DEATH OF MEMBER AFTER RETIREMENT:
- Benefit Type = ANTP
- Formula Type = FACTOR
- Formula Applied To = ANNUITY AMNT
Note:
The formula type of FACTOR must be used, as MULTIPLE only allows for two decimal places.
Refer to
- Product Launch Requirements
Product Update
Product Update Type: Maintain Benefit Rules
EFT rules for the following accounting activities, using the annuity administrator branch bank account:
|
MEMBENPAID |
From (Credit) Account |
|
PENSIONDED |
From (Credit) Account |
|
PENSIONDERV |
To (Debit) Account |
|
MEMPENPAIDRV |
To (Debit) Account |
|
BENPAYAMNT |
From (Credit) Account |
|
BENTRANSFER |
From (Credit) Account |
Refer to
- Product Launch Requirements
Product Update
Product Update Type: Bank Account Rule
If there is a need to load members in respect of whom the product is administered by a different administrator, then these members can be loaded individually or via file upload.
For the initial load of membership details, refer to Upload Bulk Member File under
Processes
File Transfer
Conversion
Uploading Files and Documents