Retirement Quotations
Overview
A request for a retirement quotation may be received from the member directly, a third party acting on behalf of the member or may be an automatically generated workflow as the member is approaching their Normal Retirement Date. If the request is not received directly from the member, you should ensure we hold the appropriate authority before acting on the instruction or releasing any data to the third party.
A retirement quotation could be for ill health reasons or as an at early, normal or late retirement date.
Generally a member may be able to take their benefits from age 55 (due to increase to age 57 in April 2028) subject to the scheme rules and any protected retirement age. Members under 55 may be able to access their benefits early in the event of ill health, again subject to scheme rules.
Process
Before issuing a quotation, the appropriate administrative process should be followed to check for eligibility and/or any Trustee/Employer consent requirements.
To run a quotation for a member, scroll down to New Events and Services and select the relevant quotation i.e. Active Retirement, Active Ill Health Retirement, Retirement from Deferred etc, the date will default as the current date but can be overridden to the required date and click Add Quote.
From the main member record you will now see the quotation within the Quotations table. Click on the quotation to view the results.
The results screen will appear as below, if the AVC value shows as no result override this with a zero value, if the member has an AVC fund override this with the actual AVC value to be quoted.
The display will be dependant on the scheme set up but you should as a minimum see a table for Pre Commutation Pension, Quotation Results and Lifetime Allowance.
Within the Quotations Results the PCLS Chosen by Member field will need to be populated, normally this will be the value in the Max PCLS field you will enter, if however, the member has expressed a specific amount this can be updated here instead. The Residual Pension will then automatically populate.
You can drill into the detail of any of the calculated output to review the Mantle calculations.
As an example, clicking on the PA65 Post 97 – 09 tranche above, and then clicking on Details;
From here you can view the various inputs to the calculations, if the member were active, you would see service, accrual, and final pensionable service calculations. Further down the screen you will see Precedents and from here you may be able to drill further into certain data fields for the calculations if necessary.
Depending on the scheme set up you may also have results for a trivial commutation lump sum if applicable.
You should use the functionality above to drill into the calculation to carry out any spot checks required to verify the output.
Ensure you save the record before moving on to drafting the relevant letter for the member. This can be prepared through the quotation on Mantle using the mail merge drop down and selecting either an illustration or an options pack. The text on the first page can be customised to suit the nature of the request, if necessary, before you click ‘Confirm First Paragraph”. If the request is received from an IFA, a copy of the member illustration/pack should be sent to the member and the IFA separately.
The illustration template is a reduced version providing the options available to the member and typically the figures are rounded to the nearest hundred.
The options pack will provide the member with more detail about their entitlement and provide the necessary forms etc to complete if they wish to proceed with their benefits.
If the member is retiring on the grounds of ill health a separate template may be available.
Generally if the quotation date is 6 months or more in the future it is more likely that the illustration should be provided, unless this is being produced for a member attaining their Normal Retirement Age within that period.
The workflow checklist should be updated and allocated as required for peer review.
Another administrator will then be required to review the updates to the record and confirm the two step approvals to accept the changes (or reject if it is incorrect). The record should be saved to commit the data. Similar actions are required for any correspondence that has been drafted. The workflow checklist can then be updated accordingly.
Any correspondence should be issued before the workflow checklist is completed in full. This will automatically register the completion of the SLA (Service Level Agreement) electronically.