This document describes the formulae and methods used by the system to calculate benefit projections for member benefits.
In providing a projection facility, the following general principles should be borne in mind:
Defined benefit (DB) retiral benefits
The benefit value as quoted at the current date, is projected forward with interest, together with the projected future contributions. The pension is based on the final average salary, with the relevant decrease / increase in accrual as per the rules defined for early and late retrials.
All other benefits
The benefit value is the quoted value as at the current date plus projected future contributions plus projected investment returns from the current date to the date of the event.
Scale of benefits
The calculation of the benefit up to the current date includes any scale of benefits defined for the product.
The calculation of the benefit from the current date to the date of the event excludes any scale of benefits defined for the product.
Calculation date
Unless otherwise specified, all calculations default to the current date.