Retirement Settlements
Overview
Every administrator/scheme will have their own settlement process as such the following should serve as a guide on how to update Mantle and does not cover the administrative process which should be referred to alongside this.
A request for a retirement settlement is initiated as soon as completed forms have been received.
Process
Subject to the appropriate administrative process, it is good practice to issue an acknowledgment to the member, and any advisor acting on the member’s behalf, confirming receipt of the forms, request any additional information and advise on timescales.
The administrator is now required to;
- verify the member’s identity
- complete the necessary checks in terms of Trustee/Employer Consent, requirements to disinvest any AVC/DC fund for payment, if an active member any final leaver details from the Employer
- if an ill health retirement ensure the appropriate medical evidence has been provided
Provided the retirement settlement can proceed, update the member’s status by scrolling down to New Events and Services and select the appropriate retirement event i.e. Retirement from deferred, the date will default as the current date (adjust as required to the effective date of retirement) and click Add Event.
This will refresh the screen into the new event status with pre-defined fields, some of which will automatically populate and some for the administrator to complete. Within the Cash Commutation table the administrator will need to enter the AVC/DC value and the PCLS Chosen by Member.
Once entered, the LTA, Pension Payments and Initial Pension tables will populate automatically. Please refer to the Initial Pension Solutions Article for more information on how these values are calculated.
Additionally once the PCLS Chosen by Member has been entered, this will trigger a field on Mantle to enter the payee details for both the one-off payment and for the recurring pension payments.
Click update to enter the required information.
As per the Retirement Quotation Solutions Article, an administrator can drill into the detail of any of the calculated output to review the Mantle calculations.
P45 Data
If a member has provided a valid P45 (typically dated within 3 months), the details can be entered to Mantle directly to feed through to Payroll.
Once the retirement event has been added to the record, click on Details under Payroll Elements;
Click on add New P45 as below;
Complete all the information on the screen below, including ticking the wk1mt1 basis box, but leave the old payroll id field empty.
Once the data is ready to be peer reviewed it requires the administrator to save the record by clicking the save icon in the top right-hand section of the record.
The settlement letter should be drafted for the member. This can be prepared through the retirement event on Mantle through the mail merge drop down. The letter will then appear as Draft document on the record.
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). They will also be required to approve the one-off payment on the record to push this through for treasury/payroll. The recurring payment information (pension payments) will now feed into the payroll run when next processed. 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.