Commutation Function Configuration
This document sets out the recommended configuration for the cash commutation functions. There are multiple functions available that provides various outputs. These all have the same parameter configuration, and link back to the same underlying functionality.
The following is the recommended approach to setting up comm_total_cash
This group should consist of all the tranches of benefits that should be treated as commutable. For each tranche you need to ensure that the item is ticked as commutable and have a CCF factorset allocated to it.
This group should include an item representing the Total Pre 97 Pension at DOR less Total GMP at Payment Date. This item represents the Pre 97 Excess Pension that is remaining and commutable once the GMP at Payment Date is covered.
In order to achieve this use the function gmp_offset_xs_remainder. In the event that the GMP at Payment Date is greater than the Total Pre 97 at DOR, thus resulting in a negative result, this item will output a ‘no result’ and flag that the calculation cannot continue.
Within this function there is the option to apply future assumed fixed pension increases to the Excess Pension between DOR and GMP Payment Date.
You need to ensure that all items under Pension to Commute group plus GMP at Payment Date group should equal Total Pre Commuation Pension at DOR.
Default recommended approach would be to NOT apply future pension increases within this function.
The following is the recommended approach to setting up comm_commuted_cash/ comm_avc_cash/ comm_net_pension_total
The following is the recommended approach to setting up comm_net_pension_slice
