When members allocate their future contributions, all income types (contributions / reserves), are stored at a member level with the same effective date. This will ensure that the situation does not arise where some income types are referenced at a member level while others are referenced at a default level.
The following principles are applied:
- When a member decides to make a choice, all the income types will be stored at an income type level.
- There will be no mixture of income types at category, scheme default and individual split levels.
- Where the administrator can decide which of these income types are allowed to be switched or allocated, the system will always look at the defaults, as this is not available when the member allocates and switches.
When a new member joins a scheme, the system will allocate investments to the default investment category or scheme default, e.g. income types ECS, RCS, EVS, TRC.
- When the JU3BH Member Investment Allocation Details List screen is displayed, the member’s current allocations will be shown per income type.
- If the member decides to change his ECS allocation, but not the other income types:
the current allocations will still display the defaults, as the member has not yet confirmed the allocations.
the member’s interim allocation under NEW ALLOCATIONS for ECS will display the selected allocation.
- When the member confirms the allocations, the program will loop through all of the income types indicated above, and create the member splits per income type even though the member has only selected one income type to change, i.e. the data for ECS will be stored with the member's choice. The RCS, EVS and TRC will also be stored as a member split, but with the default portfolios.
The result is that when a member chooses to allocate a member split, all of the contribution income types associated to the scheme will be stored as a member split with the same effective date.
When a member chooses to have one income type in a scheme as a default, all of the other income types will also be set to the scheme default. All of the member's current splits will be end-dated.
A message will be displayed to indicate this when the future allocations are authorized.
When one income type is selected at life stage level, all income types will be selected at this level, i.e. no mixture as this also changes the category. All individual splits will be end dated.
Note:
The above also applies to payroll splits.