Regular Payment (Living Annuity)

This option enables you to capture details of the regular payment amounts to be made to the member / policyholder.

Select Regular Payment from the sub-menu on the left. 

The JU4DB Annuitant Process screen will be displayed.

For more details on the processing of annuitants refer to

Processes

Regular Payments

Annuitant Update Types

Note:

When the Payable from Fund indicator has been selected and the claim has been authorised by the user, the system creates a Service Request in My Workwith a Process Name of CAPTURE ANNUITY and an Activity name of CAPTURE ANNUITY.

For more information refer to

My Work

Process SR

Capture Annuity

Write-up of book value for regular payment disinvestments

When money is disinvested to cover a regular payment amount, there will be a write-up of the book value in the unitised investment account.

Note:

There is no tax implication, however it can result in a negative monetary balance on the unitised investment account as the market value realised will in most cases be greater than the book value. 

Calculation of profit or loss

In the Living Annuity Payment run, irrespective of the Type of Run for each Portfolio from which money is to be disinvested and for which the Type of Investment is UNITISED, the value of the realised profit or loss Portfolio will be calculated as follows:

A.       Calculate the estimated number of units to be disinvested by dividing the proportion of the payment amount to be disinvest from the Portfolio by the latest Unit Price for the Portfolio

B.       Retrieve the latest unit balance on the INVSTMEMUNIT account for the Portfolio

C.       Retrieve the latest monetary balance on the INVSTMEMUNIT account for the Portfolio

D.      Calculate the realized profit or loss per Portfolio as follows:

          Amount to be disinvested for the Portfolio – (A / B * C)

          If the result is positive it is a profit and if it is negative it is a loss.

Note:

For daily priced Portfolios the unit price will not be available at the time the BT’s are created and therefore the number of units that will be realized can only be estimated based on the latest unit price.  This will result in a slight inaccuracy in the calculation of the realized profit or loss.  

The system will create Business Transactions (BT’s) with the following Accounting Activities with the monetary amount of the profit or loss calculated:

Profit

Loss