Calculation Method (UDPV Definitions)

Value

Description

HIGHESTYRAVG

Calculate the highest 12 month average of the Member’s Monthly Salary as defined in the Formula Applied To over the period defined in the Scale, increased by the pension increases for the applicable year.

ADDED YEARS

Lookup AVC percentage for the specified period as defined on the Benefit Scale, whether it be physically coded on the scale or on the Benefit Parameters. If the period falls within the complete period, proportion it to the complete period. Apply actual hours on the member record, divide by fulltime hours captured under the BENCALC parameter. Do not apply career breaks. Add all totals together and return an amount

AGE

If the Formula Applied To is MEMBER, then calculate the member’s AGE as at date of calculation. If the Formula Applied To is SPOUSE, then read the latest active Spouse linked to the member and determine the age as at date of calculation

ALLOCATESPANN

Creates an Annuity Payment record for each client relationship of type SPOUSE with a Regular Payment Amount equal to the result of the Calctype, where the Type of Payment = ANNUITY.

This will usually be used when the member dies within the guaranteed period.

The annuity record to be created must have an effective date of the 1st of the month following the date of calculation  with a Type of Annuity = SPOUSE POST RET. (To be used when a member dies post retirement and a spouse’s pension must be calculated and set up).

ALLOCSPANNDIS

Will do the same as ALLOCATESPANN calculation method except that the effective date of the new annuity record must be the day following the date of calculation. (To be used when a member dies in service and a spouse’s pension must calculated and set up).

ANNUALPENSION

Retrieve the amount in the Total Pension field as stored on the JU4DC Payment Details Screen for the Payment Type specified in the scale Classification value. The Formula Applied To should be defined as PENSION PAYMENT.

BCE PERCENT LTA

Sums all the active LTA records for the person across all schemes on the member lookup table based on the Classification on the Scale of Benefits.

DCPHI-DODINCFCT

Determine the complete number of years between DCPHI and DOD, if the member has no DCPHI stop and return 1. If the member returned from PHI to active prior to DOD, stop and return 1.

If the member has a DCPHI date, then use the number of complete years calculated and look up in the table holding the index percentages (to be set up as a table named INDEXEDINCREASE under the BENCALC) the annual increase date prior to the DCPHI date and start multiplying (1+% for that year) * (1 + % for next year) etc until it is done for the number of years calculated in the UDPV. It is assumed that there would be 1 INDEXEDINCREASE % coded per year.

So the final result of the UDPV is either 1 (for active) or the TotalBenSalInc (for PHI)

GMP REVALUATION

Determine the factor to use for revaluing GMP for the number of complete tax years from tax year coinciding or following date of deferment to earlier of tax year prior to GMP Age or tax year of Date of Calculation. The method of calculation is based on the GMP classification of types :

Fixed Rate   - determine factor by using fixed rate and number of tax years.

Section 148 - find a factor on table based on the above tax years

The formula used in the calculation is ((1 + Fixed or Section 148 rate) ^ # tax years between deferment and exit date) * Member Values GMP Amount.

GMPA REVALUATION

Determine the factor to use for revaluing GMPA for the number of complete tax years from tax year coinciding or following date of deferment to earlier to GMP Age. The method of calculation is based on the GMP classification of types :

Fixed Rate - determine factor by using fixed rate and number of tax years.

Section 148 - find a factor on table based on the above tax years.

The formula used in the calculation is ((1 + Fixed or Section 148 rate) ^ # tax years between deferment and GMPA date) * Member Values GMP Amount.

GMPADJUSTED

Use calculated GMP benefit amount (Scheme as well as Transfer in) as at effective date when GMP amount was originally calculated, revalue to Date of Retirement at the relevant revaluation rate, project to last complete tax year before GMP Age at relevant assumed revaluation rate, and discounted to Date of retirement at assumed pension increase rate

PREPHI

Check for the member’s status of PHI and uses this PHI date to retrieve the period of salary (as defined by the classification) prior to this date. If no PHI, then retrieve the period of this salary prior to the calculation date. Apply the scale on the latest salary of this type based on scale defined. i.e. if the scale is coded as 0-4 years and the % is zero, then zero will be returned if the continuous salary returned above is less than 4.99 years. 5-99 years with 100% implies that 100% of the latest salary determined above will be returned. Continuous salary is determined by identifying if the salary period covers the respective scale range without any zero salary records.

Multiple classifications may be coded, each with their scale period and %. In this case, continuous salary may be checked across both classifications.

- Reference Afterwork proforma – SAL02.

DOX-DJF

Determine the period between Exit Date and the date the member joined the scheme.

DOX-DOD

Determine the period from Date of Exit (Retirement) to Date of Death (processed as a Post Retirement type of claim) in years and completed months. This will be used in conjunction with Formula Applied To = MEMBER even though at this stage the member is now a pensioner.

DOX-NRD

Determine the period between the Exit Date and the Normal Retirement Date.

DOX-ERD

Determine the period between the Exit Date and the Early Retirement Date.

DOX-LRD

Determine the period between the Exit Date and the Late Retirement Date.

DOX-SPA

Determine the period between the Exit Date and the date when the member reaches the State Pension Age.

DOX-GMPA

Determine the period between the Exit Date and the date when the member reaches the Guaranteed Minimum Pension Age.

DOX-SP DEATH

Determine the period between the age of the Member and Spouse at Date of Exit.  Where the spouse is older than the member, then a negative result is returned.

DOX-PHI

Determine the number of years between when the member became PHI and the Exit Date.

AGE EXACT

Calculates the age in years and total days. Days / 365(6) is the decimal for the year.

The decimal for the year must be rounded normal to 3 decimal places. eg: 24yrs 50days is 50/365 (as we are in 2009 which is not a leap year) = 0.136986 rounded to 0.137 plus the 24 yrs is then 24.137

ALLOCATEDEPANN

Reads the number of scales defined to the benefit product and determines the maximum number of dependants on the scale. 

If the number of dependants before end-dating the selected one is greater than the maximum number of dependants defined on the scale, sum all the Regular Payment Amounts for all dependants before end-dating the selected one, then divide this total Regular Pension Amount by the number of dependants after end-dating the selected one. This is the new Regular Pension Amount per dependant.

If the number of dependants before end-dating the selected one is less than or equal to the maximum number of dependants defined on the maximum scale, then sum the Regular Pension Amount for all dependants before end-dating the selected one, divide this total by the percentage on the scale applicable to the number of dependants before end-dating the selected one and multiply by the percentage on the scale for the number of dependants that will remain after end-dating the selected one divide by the number of dependants that will remain after end-dating the selected one. This is the new Regular Pension Amount per dependant.

Example:

Scale of Benefits on Benefit Product

No. of Children

Total %

1

10

2

18

3

25

Spouse

50

Member’s pension at date of death

250

Year 1

Inc

Inc

5^th child ends

4th child ends

3rd child ends

1

12.5

13.75

15.125

18.90625

25.2083333

27.225

2

12.5

13.75

15.125

18.90625

25.2083333

27.225

3

12.5

13.75

15.125

18.90625

25.2083333

4

12.5

13.75

15.125

18.90625

5

12.5

13.75

15.125

62.5

68.75

75.625

75.625

75.625

54.45

ALLOCATESPANN

This will create an annuity payment record for each client relationship of type SPOUSE with a regular payment amount equal to the result of the CALCTYPE where the type of payment = ANNUITY

TOTDEPEND ALLOC

Determine the number of client relationship records of type DEPENDANT and DISABLED DEPENDANT and read the appropriate scale for that number to determine the % to be applied.

INDANNUITY

Defines how the annuity payment records within the calctype must be created.

If the calctype = a1+a2 and the calc method = none, then 1 total must be created.

If the calctype = a1 + a2 and calc method = INDANNUITY, separate annuity records must be created.

Take benefit products included in the calculation defined on the benefit product using INDANNUITY, go one level down to get the detail of each benefit product and use that detail in the benefit product one level below the product using INDANNUITY to set up the new pension payment detail records while at the same time end dating the previous pension payment detail record that existed for the same Type of Benefit. Only when the actual detail on the pension payment detail record has changed. (ie new Type of Payment, or new Amount, or new Type of Benefit detected).

This calculation method should be used when the package has been set up with a purpose of ANNUITY.

INVSTMT UNIT

Calculates the difference between the money realised for unitised investments and the benefit to be paid.

INVSTMT NO UNIT

Calculates the difference between the money realised for non-unitised investments and the benefit to be paid.

INTERPOLATE

Interpolate between the values on a factor table.

INTERPOLATE 2D

A 2 dimensional interpolation. 

In an example where it is required to interpolate a supplied yield % between the member’s age:

-      Interpolate between the top and bottom yield % based on the member’s bottom age and keep this result (A).

-      Interpolate between the top and bottom yield % based on the member’s top age and keep this result (B).

-      Interpolate the member’s bottom age with (A).

-      Interpolate the member’s top age with (B).

-      Add the above two together.

TAX RATE

Returns the tax percentage based on the tax tables

TAX AMOUNT

Calculates the tax amount based on the tax tables

QUALIFY SERVICE

Under the rules, "qualifying service" for an Afterwork member means "active membership", which means being an "active member". 

"Active member" means a member who has been admitted to membership and who has not permanently ceased to accrue retirement benefits for the purposes of the Fund.  The member would have completed 2 years qualifying service under rule F8.1 and therefore be entitled to a deferred pension after 2 years of joining.  However, periods of unpaid leave such as career break are non-pensionable so this means that the service is non-pensionable but counts towards qualifying service.

Rule F2.9 covers the statutory periods of leave and specifies that rule F8 does not apply until the end of the period of absence.  This means that the deferred pension would not be calculated until the end of the leave if the member confirmed that they are not returning.

CONT QUAL SERV

Continuous Qualified Service

SCHEMELTA%

When this calculation method is used the result of this benefit calculation will be stored on the member value table with a type of LTA and for the subtype of SCHEME LTA.

SERVICE HOURS

Calculates the service taking into account career breaks and the number of hours coded for the member.

SPGUARANTEE END

A Calculation Method SPGUARANTEE END is used when the Pension Calculation is defined in respect of the spouse’s pension representing the balance of the guarantee period paid as a monthly pension.

Lookup the Guarantee Period End date defined on the member annuity record (to whom the Spouse has the relationship). The Classification will define which annuity payment type to retrieve. Insert this Guaranteed Period End date as the End Date on the new Annuity Payment record if the Type of Dependant on the Scale of Benefits = SPOUSE.  Include the functionality as defined by Calculation Method ALLOCATEESPANN.

Check that the Guarantee End Date is greater than the date of  calculation, and only in this case create the SPOUSE annuity record with an effective date the 1st of the month following the date of calculation with a Type of Annuity = SPOUSE POST RET.

FDGUARANTEE END

A Calculation Method FDGUARANTEE END must be used when the Pension Calculation is defined in respect of the financial dependant’s pension representing the balance of the guarantee period paid as a monthly pension.

Lookup the guarantee period end date defined on the classification selected in the benefit product and insert it as the end date on the new annuity payment record if the type of dependant on the scale of benefits = FIN DEPENDANT.

When the end date is reached the pension will no longer be included in the Annuity Run.

TOTANNPENPAYM

The total of all the Pension Elements in payment at the date of death.  Latest payment x 12.  Where classification values have been assigned, use those specific pension elements.

BENFALLOCATION

This calculation uses the same principle as the CALCTYPELOOP product with the Formula Applied To of BENEFICIARY or FOR EACH FINDEP, except that the result returned will be the percent or amount as defined on the beneficiary table.

OFFSET

Calculates the benefit amount for each of the member’s memberships that may exist in the LINKED BENEFIT schemes (as defined on the Scheme Associations menu). The benefit is calculated for the other LIVE or DEF ANNUITANT memberships by reading the fund rules using the same Exit Date and Benefit Event for the active benefit category pertaining to that membership and where the Benefit Product Benefit Type for the source and target schemes match. The retrieval of the matching result on the target scheme is only done on the top package level.

The calculation for each of the target memberships will result in a QUOTE request being generated in the target scheme which can be further interrogated.  

The results from each membership are accumulated together to give a consolidated amount. A breakdown of the high level result for each membership can be seen by drilling down on the quote/claim result enquiry window.