Trivial Commutation 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 trivial commutation 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
- any additional steps required where a member in already in receipt of their pension or for a dependant receiving a Trivial Commutation Lump Sum Death Benefit
Provided the settlement can proceed, update the member’s status by scrolling down to New Events and Services and select the appropriate trivial commutation event i.e. Deferred trivial commutation, 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.
Similar to a retirement settlement, a field will generate on Mantle to enter the payee details. Click update to enter the required information.
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 trivial commutation 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 payments on the record to push this through for treasury/payroll. The payment data 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.