From the Dashboard, select the '+' button, the Pensions tile and then Final Salary
Complete the Basic information first and start by selecting the Owner of the pension from the Owner drop down list
Please note that fields marked with an asterisk (*) need to be completed.
AdviserGo has an Inline help feature which provides relevant help topics as you build a plan in AdviserGo. Inline help will assist you with entering information into the fields, will give further information to help you understand how it works and provide access to further assistance. Inline help.
Enter a Name for the pension. The name you enter must be unique within the plan.
Status: Select the category that best describes the final salary.
- Active
- Deferred
- In Payment
The status will determine the precise options which need to be entered, but each category invites you to input survivor's benefits and the relevant escalation options. You can select from pre-specified Preferences settings such as LPI, CPI, RPI or Other, where you can enter an editable percentage.
Before going any further, a question that is often asked with reference to Active and Deferred schemes, relates to the fields labelled Normal Retirement Age (NRA) and Actuarial Reduction.
The software assumes (by default) that benefits will commence from the individual's Retirement event, not from the scheme's NRA. As such, these fields are only of genuine relevance for an individual who may be taking early retirement and, thereby, is at risk of incurring an actuarial reduction on benefits (which, of course, the software will apply, as appropriate). These fields are editable.
The NRA tells Voyant the Normal Retirement Age of the pension scheme and whether early retirement actuarial reduction should apply. This age is not to tell Voyant when the pension starts payment - that is in the Timing screen.
(How to change the start date of the benefits is detailed below.)
- Active
When inputting an 'Active' final salary scheme, you can link it to Employment. This, combined with Accrual Rate, Salary Scheme and Years of Service to Date will give the software the ability to calculate the appropriate level of benefits.
If you do not link the scheme to an individual's employment, it will be necessary to input the Pensionable Salary - this should be entered as a 'future value' (i.e. it will not be inflated). This option is useful in instances where an individual's pensionable salary differs from the salary that they are receiving.
- Deferred/In Payment
In the case of Deferred benefits and those already In Payment the level/value of benefits is a known quantity. The amount of the benefit should be entered in the Amount Field. You can choose Annually, Monthly etc..
For a Deferred Pension, where you have a Future Value (i.e. a value that does not need to be inflated from the start of the plan to when the benefits commence) you should choose None in the Escalation Type in Deferment field.
- Lump Sum Options (applicable to Active and Deferred benefits only)
The default is None, i.e. no lump sum amount. Assuming that the client is entitled to tax-free cash, their entitlement needs to be entered by choosing an option from the drop down menu.
More details on the 'Commutation' option can be found here
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Survivor Percent input the percentage of the pension the client's beneficiary will receive, if applicable
- Death-In-Deferment (applicable to Active and Deferred schemes only)
The death benefits that are applicable during the period after the individual has ceased employment, but before they have commenced drawing benefits from the scheme. Toggle on Survivorship Applies and the software will apply the Suvivor Percent if the client dies during deferment.
Lump sum payouts for death in deferment can also be entered here.
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Widows/Widower's Pension (applicable to Active schemes only)
The death benefits that are applicable during the period before the individual has ceased employment. Toggle on Widows/Widower's Pension Applies and input the relevant details:
Click Save in the top right of the screen to save your inputs.
Commencement of Benefits
As is the case with Money Purchase schemes, the software assumes (by default) that final salary benefits will commence payment at an individual's Retirement event - where this is the case, no further action is needed.
Where this is not the case, you can edit when these benefits will start. You do this by editing the start event in Timing.
Initially you will see the start event has defaulted to the Retirement event.
You should create a new event in the year the final salary salary benefits are due to start. This article guides you through how to create an event from the Timeline. Events
Events can also be created by double clicking the year column in the Timing.
Once the new event has been added, simply drag and drop it into the Start Pension box and press Save.