Once the system has accepted all parameters as valid, the projection results, as well as details of any membership liabilities, will be displayed on the lower section of the screen.
Note:
If the system does not find a batch parameter for inflation, or no inflation rate value has been captured by the user, the Total projected lump sum value adjusted for inflation field will be blank.
Click PRINT to display additional projection details.
When calculating the monthly pension that can be purchased with the capital amount, the system will read the Factor table with a Table Type of ANNUITY PEN AMT linked to the Benefit Product for the Benefit Package and calculate the annuity based on the applicable factor as per current functionality.
If no Factor table with a Table Type of ANNUITY PEN AMT is found, the system will read the Global Parameter with a Parameter Type of BENCALC and a Benefit Calculation equal to ANNUITY FACTOR to calculate the pension amount based on the value captured for Dependant’s Date of Birth.
If a value has been captured for Dependant’s Date of Birth, the system will calculate the difference between the Member’s date of birth and the Dependant’s date of birth in years rounded to the nearest year.
The system will find the Member’s gender and if it is MALE and the Dependant’s date of birth is later than the Member’s date of birth age, the system will read the Global Parameter with a Parameter Type of BENCALC, Benefit Calculation of ANNUITY FACTOR, Classification equal to SPOUSE YOUNGER and Gender of MALE and find the value for the Side Label value equal to the Member’s age as at the Projection Date and for the Top Label value equal to the number of years difference between the Member’s age and the Dependant’s age.
If the Dependant’s date of birth is earlier than the Member’s date of birth, the system will read the BECALC Global Parameter for which the Classification is SPOUSE OLDER.
If the Member’s gender is FEMALE and the Dependant’s date of birth is later than the Member’s date of birth age, the system will read the Global Parameter with a Parameter Type of BENCALC, Benefit Calculation of ANNUITY FACTOR, Classification equal to SPOUSE YOUNGER and Gender of FEMALE and find the value for the Side Label value equal to the Member’s age as at the Projection Date and for the Top Label value equal to the number of years difference between the Member’s age and the Dependant’s age.
If the Dependant’s of birth is earlier than the Member’s date of birth, the system will read the BECALC Global Parameter for which the Classification is SPOUSE OLDER.
If there is no value captured for the Dependant’s Date of Birth, then the system will read the Global Parameter with a Parameter Type of BENCALC, Benefit Calculation of ANNUITY FACTOR and Classification equal to NO DEPENDANT and Gender equal to the Member’s gender.
In all cases, the rates are for full years and therefore are interpolated where the member’s age is not a full year.
Note:
The annuity factors provided are the monthly pension amount that can be purchased per R10,000.00 of capital and therefore the annual pension amount must be calculated as follows:
(Capital value – commutation amount) / 10,000 * annuity factor
To calculate the annual pension multiply the monthly pension by 12.