When the expected income job is run, the system will calculate the members' expected SARR contribution. The expected income run works from the start date on the fund income rule and then for each year thereafter annually. Each member will have a record for every year that there is an NI EARNINGS salary type.
If there has been a salary increase in the tax year, the value will be calculated on the two or more salaries and offset against what has been received as one amount. The tax year is stored on the global parameter for the territory and the territory is obtained from the scheme details record.
If the member's age as at the last day of the previous tax year is greater than the value for STATEPENSIONAGE, an expected rebate for the member will not be calculated.
If the member's age at the last day of the previous tax year is less than the value for STATEPENSIONAGE, the Member's expected rebate will be calculated as follows:
A x B / 100
Note:
For each of the calculations above, when reviewing the age versus the tax year, bear in mind that this is governed by the date of the run in relation to tax year of the NI EARNINGS.
Income Types NI Rebate and % NI Earnings
When calculating the expected income amount for an Income Type with a Calculation Type of NI REBATE or % NI EARNIGS, the system will read the Territory Parameter CONTRACTOUTEND in addition to the STATEPENSIONAGE. If the Effective Date of the calculation is greater than or equal to the CONTRACTOUTEND date, then a value will not be calculated.
Note:
Currently the Expected Income process checks for the member’s age relative to the State Pension Age. This will still be done in addition to the check above as State Pension Age may be earlier than CONTRACTOUTEND date.