When distributing an expense, e.g. Investment Management Fee, to exited members, the exited members’ portion must not be realised.
By the definition above, an exited member is a member whose investment has been realised. This means that the expense portion that would have been disinvested has already been disinvested and must not be disinvested again at a scheme level.
The members' portion of the expense must be ‘realised’ on the member’s investment account, and the negative balance remaining must then be written off. The accounting activity to be used for this is EXMEMMANFEEWO for investment management fee.
At a scheme level the accounting activity to be used for 'Move Exit to Scheme' is FMANFEEEXIT for investment management fee. This accounting activity debits a scheme contingency reserve account and credits a Retirement Fund reserve account.