This allows for the re-allocation of beneficiary percentages.
If the sum of all of the beneficiaries’ Percentage Allocations is equal to 100%, the system will calculate each beneficiary’s allocation amount based on the updated Percentage Allocations.
For each Beneficiary, the system will calculate the difference between the beneficiary’s original allocation amount and the new allocation amount. Pre-authorised BT’s will be created to adjust the beneficiaries’ investment balances depending on whether the difference is negative or positive.
For more information, refer to Processing below.
Click RE-ALLOCATE on the JU3EQ Amend Beneficiaries screen.
Once the system has finished re-calculating each beneficiary’s allocation amount, the following message will be displayed:
Beneficiary re-allocation complete please authorise
Click OK to remove the message.
These re-allocations must now be authorised.
The following messages may be displayed when RE-ALLOCATE is selected on the JU3EQ Amend Beneficiaries screen:
If there is nothing to be re-allocated, the following message will be displayed:
Nothing to re-allocate for beneficiaries
If the beneficiary total allocations are not 100%, the following message will be displayed:
Beneficiary total allocations are not 100%
If the existing beneficiary transactions have not been authorised yet, the following message will be displayed:
Existing beneficiaries transactions must be authorised before adding new
If the beneficiary investment balance is insufficient, the following message will be displayed:
beneficiary investment balance is insufficient
In each case, click OK to remove the message.
When RE-ALLOCATE is selected on the JU3EQ Amend Beneficiaries screen, the system will perform the following:
Check that the sum of all of the Beneficiaries’ percentages is equal to 100%.
If it is 100%, retrieve the MAINMEMINV BT’s and the MEMBERBONUS BT’s from the INVESTMEMB account for the deceased member to which the Beneficiaries are linked and sum the amounts.
Calculate each Beneficiary’s allocation amount based on the updated Percentages and the sum of the MAINMEMINV and BT’s.
Calculate the difference between the Beneficiaries original allocation amount and the new allocation amount.
Retrieve the BT’s on each Beneficiary’s CONTRIBUTION account and sum the amounts per Beneficiary (this represents the Beneficiary’s original allocation amount).
- For each Beneficiary, calculate the difference between the Beneficiary’s original allocation amount and the new allocation amount
- Retrieve the balances for each of the Beneficiaries’ INVESTMEMB accounts. For each of the Beneficiaries for which BT’s are retrieved from the CONTRIBUTION account, check that the new allocation amount calculated above is greater than or equal to the difference calculated above.
- If the new allocation amount is less than the original allocation and the difference between the original allocation amount and the new allocation amount is less than the INVESTMEMB balance for any of the Beneficiaries, the following error message will be displayed:
The adjustment for one or more of the beneficiaries’ allocation amount is less than the beneficiary’s investment balance and therefore the allocation cannot be reduced. Please adjust the allocation percentages.
Note:
If no BT’s are retrieved from a Beneficiary’s CONTRIBUTION account then the Beneficiary is one of the new Beneficiaries captured. This can’t be derived based on the balance on the INVESTMEMB account as a Beneficiary could have been paid out in full and therefore has a zero balance at the time that the re-allocation is done.
If there are no Beneficiaries for which the adjustment is greater than the Beneficiary’s INVESTMEMB account, the system will create the Pre-authorised BT’s to adjust the Beneficiaries’ investment balances depending on whether the difference is negative or positive.
Negative
If the difference is negative, i.e. the Beneficiary’s new allocation amount is less than the original allocation amount, the following BT will be created with the Due Date, Transaction Date and Effective Date equal to the current date:
BENEFICIARY INV MEMINVADJNEG MEMBER DR INVESTMEMB
BENEFICIARY INV MEMINVADJNEG MEMBER CR CONTRIBUTION
Positive
If the difference is positive, i.e. the Beneficiary’s new allocation amount is greater than the original allocation amount, the following BT will be created with the Due Date, Transaction Date and Effective Date equal to the current date:
BENEFICIARY INV MEMINVADJPOS MEMBER DR CONTRIBUTION
BENEFICIARY INV MEMINVADJPOS MEMBER CR INVESTMEMB
Note:
In most cases the positive adjustments will be for the additional Beneficiaries. It is unlikely that there will ever be a positive adjustment for an existing Beneficiary as effectively a portion of their investment will be re-allocated to the additional Beneficiaries.
If an Initial Payment Percentage or Initial Payment Amount was captured on the Member Details screen for a new Beneficiary, a BT will be created with the following Accounting Activity:
BENEFICIARY PMT INITIALPAYMT MEMBER DR BENEFITS
BENEFICIARY PMT INITIALPAYMT MEMBER CR INVESTMEMB
BENEFICIARY PMT INITIALPAYMT FUND DR BENEFITS
BENEFICIARY PMT INITIALPAYMT FUND CR BANK
When the Pre-authorised BT’s have been created successfully, the Activity Name will be updated on the applicable My Work Service Request to AUTH ADD ALLOCS.
The Remaining Balance Amount will be apportioned by the system between the other Beneficiaries for which the Balance is not zero, based on their balance and the calculated amount will be displayed in the Amount column for each Beneficiary.
The apportionment per beneficiary is calculated as follows:
Remaining Balance / Sum of Beneficiaries’ Balances x Beneficiary’s Balance
The following pre-authorised BT’s will be created for each Beneficiary for the amount calculated above:
|
BENEFICIARY INV |
MEMINVADJPOS |
MEMBER |
DR |
INVESTMEMB |
|
BENEFICIARY INV |
MEMINVADJPOS |
MEMBER |
CR |
CONTRIBUTION |
Note:
The AUTHORISE and REJECT buttons on the JU3EQ Amend Beneficiaries screen will only be enabled if the Status of the BT’s in the list is not AUTHORISED BT.
My Work
When the Pre-authorised BT’s have been created successfully, the Activity Name on the My Work Service Request will be updated to AUTH ALLOC ADJS.