Viewing Pensions at Retirement Data to Calculate Liabilities
Search for the member on Mantle.
Input the assumptions shown below.
If you want PPF elements to be shown (eg. if you are looking at a TV calculation and you know that the Scheme reduces TVs to a proportion of PPF benefits, you will want to see what the PPF benefits at retirement are before the reduction takes place.)
The Future Service Display option allows service and corresponding pension amounts for members active at the effective date to be broken down into their past and future (pre valuation date and post valuation date) components. A warning banner displays on the member and in all calculation details to indicate that results using all service to date of leaving/retirement/death.
Once the member is loaded, in the “New Events & Service” box, select “Retirement from deferred” (or “Active Retirement”, should you be looking at an active member).
Set the “Event Date” equal to the member's normal retirement date.
Press “Add Event”, and now you will be automatically re-directed to the member's retirement event.
The section “Pensions Revalued to Date of Retirement” should be populated with figures, however other sections such as “Cash Commutation” will have “no results”. This is because you will need to specify the “AVC Value at Date of Retirement” (usually 0), and the “PCLS Chosen by Member”. (This can be set from anything betweeb 0 and “Max PCLS”).
The “Pensions Payments” section should now be completed, and it is these figures which Mantle values when calculating liabilities, e.g:
These are monthly pension payments. If you agree the annual figures at retirement, and you can see that they are increasing at the correct rate, and the pensions have come into payment at the correct date (eg. the first payment is the month after the member’s NRD), there is no reason why the liabilities should not tie up. (eg. the post 88 above increases at RPI max 3%, and you can see from step 2 above that RPI was specified to be 2.5%. This can be checked by dividing 2 consecutive pension payments – 226.83/221.30 – 1 = 2.5%.
If the above ties up with what you expect, then it is likely to be an error with your annuity.
Do not save this event unless you are certain it should be stored. If you move onto another screen within Mantle, it will delete this quotation. Alternatively, press the refresh button at the top of Mantle to return the member’s record back to it’s original state, ie;
