Having set up the Pension Interest Rates and other core values that are necessary for the system to process Pension contributions, you can now proceed to run the interest calculations. Please ensure that these values entered are correct (check with Company's Actuary).
Interest is calculated via separate tabs and are transparent to the user as follows:
Ordinary Member Contributions. How do I calculate interest on Ordinary Member Contributions?
Transfer Value. How do I calculate interest on employees' Transfer Value contributions?
Additional Voluntary Contributions. How do I calculate interest on Additional Voluntary Contributions?
Pensions in Payment Increases. How do I calculate interest on Pensions in Payment?
Deferred Pension Increases. How do I calculate interest on Deferred Pension Increases?
To view the calculations, navigate to Pension Admin>>Reports>>Employee Reports and Select
the report you wish to view;
OR
Navigate to Pension Admin>>Pension Administration>>Plan Members>>[find employee and expand record]>>[click respective tab].
Transfer Value Interest Calculations
Understanding the transfer value with interest calculations is crucial for accurately tracking the growth of a plan member's retirement savings. It ensures they receive the full value of their accrued benefits, including any interest earned, when moving your pension to a new plan.
The system uses the values previously set up (How do I set up Pension Interest Rates?) to calculate interest on employees' Transfer Value contributions.
To calculate the Transfer Value:
The interest rate must be setup for all the years for which the transfer value is going to be calculated.
To view the calculations, navigate to Pension Admin>>Pension Administration>>Plan Members>>[find employee and expand record]>>Transfer Value Received from Employer;
OR
Navigate to Pension Admin>>Reports>>Employee Reports and Select the report you wish to view.
Benefits>>Pension Admin>>Administration>>Calculations>>Ordinary Member
Contributions Interest Calculations
Ordinary Member Contributions Interest Calculations
Knowing the ordinary member contributions with interest calculations ensures that employees can accurately track the growth of their contributions over time. This helps in verifying the correctness of their pension benefits.
The system uses the values previously set up to calculate interest on employees' Ordinary Member Contributions. (How do I set up Pension Interest Rates?)
To calculate the Ordinary Member Interest Value:
The interest rate must be setup for all the years for which the member contribution interest is going to be calculated.
To view the calculations, navigate to Pension Admin>>Pension Administration>>Plan
Members>>[find employee and expand record]>>Member Contribution History;
OR
Navigate to Pension Admin>>Reports>>Employee Reports and Select the report you wish to view.
Benefits>>Pension Admin>>Administration>>Calculations>>Additional Voluntary
Contributions Interest Calculations
Additional Voluntary Contributions Interest Calculations
Understanding the additional voluntary contributions (AVCs) with interest calculations is important to ensure that these extra contributions are growing as expected. This allows employees to maximize their retirement savings and verify that the additional contributions are accurately reflected in their pension benefits.
The system uses the values previously set up to calculate interest on employees' Additional Voluntary Contributions. (How do I set up Pension Interest Rates?)
To calculate the Ordinary Member Interest Value:
The interest rate must be setup for all the years for which the member contribution interest is going to be calculated.
To view the calculations, navigate to Pension Admin>>Pension Administration>>Plan
Members>>[find employee and expand record]>>Member Contribution History;
OR
Navigate to Pension Admin>>Reports>>Employee Reports and Select the report you wish to view.
Benefits>>Pension Admin>>Administration>>Calculations>>Pensions in Payment Increases Calculations
Pensions in Payment Increases Calculations
Please ensure that the Interest Rate is set up and accurate as the system uses this value to calculate interest on Pensions in Payment. (How do I set up Pension Interest Rates?)
To view the calculations, navigate to Pension Admin>>Reports>>Employee Reports and Select
the report you wish to view;
OR
Navigate to Pension Admin>>Pension Administration>>Personal Data>>[find employee]>>Pension History.
Benefits>>Pension Admin>>Administration>>Calculations>>Deferred Pension Increases Calculations
Deferred Pension Increases Calculations
Please ensure that the Interest Rate is set up and accurate as the system uses this value to calculate interest on Deferred Pension Increases. (How do I set up Pension Interest Rates?)
To view the calculations, navigate to Pension Admin>>Reports>>Employee Reports and Select
the report you wish to view;
OR
Navigate to Pension Admin>>Pension Administration>>Personal Data>>[find employee]>>Deferred Pension History/Deferred Pensioner Data.