Last modified by Megan Kahl on 2022/06/17 08:36
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From version < 68.1 >
edited by Megan Kahl
on 2022/06/17 06:20
To version < 71.1 >
edited by Megan Kahl
on 2022/06/17 08:33
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1 1  
2 2  
3 3  (% style="text-align: center;" %)
4 -(% style="font-size: 28px; color: rgb(41, 128, 185)" %)**CALCULATING AND LOADING INTERIM_FINAL RATES**
4 +(% style="color:#2980b9; font-size:28px" %)**CALCULATING AND LOADING INTERIM_FINAL RATES**
5 5  
6 6  
7 7  
... ... @@ -24,17 +24,20 @@
24 24  
25 25  [[image:Calculating and Loading Interim_Final Rates_html_2d15cc65377c4c7c.png||height="180" width="210"]]
26 26  
27 -== INTERIM RATE ==
28 28  
28 +(% style="text-align: center;" %)
29 +== (% style="color:#2980b9" %)**INTERIM RATE**(%%) ==
30 +
31 +
29 29  When loading rates for the first time on the Fund, start with a price of 100. If not, determine the unit price as at the last month prior to the new interim rate. E.g., if the interim is being applied for the year 2021, the unit price from Everest to be utilized will be as at 31/12/2020. To do this, ensure that the Parent is selected, go to Client → Investment Products:
30 30  
31 31  [[image:Calculating and Loading Interim_Final Rates_html_aeedf1ec7013a979.png||height="178" width="91"]]
32 32  
33 -Double Click on the “UPs” button for the product you want to update:
36 +Double Click on the (% style="color:#2980b9" %)**“UPs”**(%%) button for the product you want to update:
34 34  
35 35   [[image:Calculating and Loading Interim_Final Rates_html_559d28bc8ecfc4a0.png||height="100" width="381"]]
36 36  
37 -A screen will open that reflects the “Used Unit Prices”. These are the prices the system is currently using for calculation of member values and benefits.
40 +A screen will open that reflects the (% style="color:#2980b9" %)**“Used Unit Prices”**(%%). These are the prices the system is currently using for calculation of member values and benefits.
38 38  
39 39  [[image:Calculating and Loading Interim_Final Rates_html_c6e0cf71f2b8533.png||height="183" width="393"]]
40 40  
... ... @@ -57,13 +57,13 @@
57 57  
58 58  The new prices can be manually loaded in Everest, or the user may utilise the import file and function. Imports are preferred to prevent finger error.
59 59  
60 -To load the unit prices via the import functionality, first determine the ‘**ProductID**’ for the product being updated.
63 +To load the unit prices via the import functionality, first determine the (% style="color:#2980b9" %)‘**ProductID**’(%%) for the product being updated.
61 61  
62 -To do this, ensure that the Parent is selected, go to Client → Investment Products:
65 +To do this, ensure that the Parent is selected, go to (% style="color:#2980b9" %)Client → Investment Products:
63 63  
64 64  [[image:Calculating and Loading Interim_Final Rates_html_aeedf1ec7013a979.png||height="178" width="91"]]
65 65  
66 -On the screen that opens, note the **ProductID** for the relevant product:
69 +On the screen that opens, note the (% style="color:#2980b9" %)**ProductID**(%%) for the relevant product:
67 67  
68 68  [[image:Calculating and Loading Interim_Final Rates_html_b68b72a894d7efaa.png||height="88" width="366"]]
69 69  
... ... @@ -72,29 +72,28 @@
72 72  
73 73  [[image:Calculating and Loading Interim_Final Rates_html_d5ab4359b6c55057.gif]]
74 74  
75 -Populate the Date, **ProductID** and Unit Price columns:
78 +Populate the Date, (% style="color:#2980b9" %)**ProductID**(%%) and Unit Price columns:
76 76  
77 77  [[image:Calculating and Loading Interim_Final Rates_html_737d85a651d2cf90.png||height="158" width="139"]]
78 78  
79 -To import the file, go to Accounts → Unit Price Management:
82 +To import the file, go to (% style="color:#2980b9" %)Accounts → Unit Price Management:
80 80  
81 81  [[image:Calculating and Loading Interim_Final Rates_html_570535c211e85663.png||height="191" width="86"]]
82 82  
83 -Locate the “**Import your unit prices**” section:
86 +Locate the (% style="color:#2980b9" %)“**Import your unit prices**”(%%) section:
84 84  
85 85  [[image:Calculating and Loading Interim_Final Rates_html_4f1b11fda376cd0c.png||height="121" width="294"]]
86 86  
87 -Click on the second **Import** button – Import Unit Prices for Parent Investment Products:
90 +Click on the second (% style="color:#2980b9" %)**Import**(%%) button – Import Unit Prices for Parent Investment Products:
88 88  
89 89  [[image:Calculating and Loading Interim_Final Rates_html_4f1b11fda376cd0c.png||height="121" width="294"]]
90 90  
91 91  
92 -
93 93  Browse to pick up your saved import file:
94 94  
95 95   [[image:Calculating and Loading Interim_Final Rates_html_591f84d57fbc47ca.png||height="162" width="252"]]
96 96  
97 -Select **Save** and **Execute.**
99 +Select (% style="color:#2980b9" %)**Save** (%%)and (% style="color:#2980b9" %)**Execute.**
98 98  
99 99  
100 100  A report will be produced indicating that the headings were recognised.
... ... @@ -104,24 +104,26 @@
104 104  
105 105  To confirm the rates were correctly imported, while on the Parent go to:
106 106  
107 -Client → Investment Products. Double click on “UPs” for the product imported. At the bottom of the screen click on the “New Used UPs” button. The screen that opens will reflect the new prices that are ready for use:
109 +(% style="color:#2980b9" %)Client → Investment Products.
108 108  
111 +Double click on “UPs” for the product imported. At the bottom of the screen click on the “New Used UPs” button. The screen that opens will reflect the new prices that are ready for use:
112 +
109 109  [[image:Calculating and Loading Interim_Final Rates_html_c2201debac9c4fd5.png||height="149" width="244"]]
110 110  
111 111  Once satisfied that the unit prices have been successfully imported, the prices are required to be linked for use in calculating the member values and benefits for the interim rate period.
112 112  
113 -Go to Accounts → Unit Price Management:
117 +(% style="color:#2980b9" %)Go to Accounts → Unit Price Management:
114 114  
115 115  [[image:Calculating and Loading Interim_Final Rates_html_570535c211e85663.png||height="191" width="86"]]
116 116  
117 117  
118 -Locate the “**Link your investments**” section:
122 +Locate the (% style="color:#2980b9" %)“**Link your investments**”(%%) section:
119 119  
120 120  [[image:Calculating and Loading Interim_Final Rates_html_b993779320601de0.png||height="114" width="630"]]
121 121  
122 -Click on the **fifth** “Select” button – Update used product prices from the ‘Start Date’ to the End Date’ section.
126 +Click on the(% style="color:#2980b9" %) **fifth** (%%)“Select” button – Update used product prices from the ‘Start Date’ to the End Date’ section.
123 123  
124 -In the screen that opens, select the product you want to update, date range you want to link and select “Test” in the **Custom 1** field. The Parent should be pre-populated but please do check it.
128 +In the screen that opens, select the product you want to update, date range you want to link and select “Test” in the (% style="color:#2980b9" %)**Custom 1**(%%) field. The Parent should be pre-populated but please do check it.
125 125  
126 126   [[image:Calculating and Loading Interim_Final Rates_html_13e8528d92a2925e.png||height="103" width="250"]]
127 127  
... ... @@ -133,14 +133,18 @@
133 133  
134 134  To check that the prices updated correctly, while on the Parent go to:
135 135  
136 -Client → Investment Products. Double click on “Ups” for the product. On the first screen that opens the new prices should appear.
140 +(% style="color:#2980b9" %)Client → Investment Products.
137 137  
142 +Double click on “Ups” for the product. On the first screen that opens the new prices should appear.
143 +
138 138  [[image:Calculating and Loading Interim_Final Rates_html_c148949d49fee58c.png||height="141" width="383"]]
139 139  
140 140  
141 141  
142 -== FINAL RATE ==
148 +(% style="text-align: center;" %)
149 +== (% style="color:#2980b9" %)**FINAL RATE**(%%) ==
143 143  
151 +
144 144  Whilst waiting for the Final Rate to be declared, the interim rate unit prices were utilised to process claims. Once the Final Rate is received for the period, update the unit prices to use the Final Rate.
145 145  \\There are 2 ways of doing this. Applying the final rate retrospectively per month OR applying an annual rate at the end of the period.
146 146  
... ... @@ -148,13 +148,14 @@
148 148  
149 149  __[[Monthly Retrospective Adjustment>>path:#_Retrospective_monthly]]__– All transactions processed in the interim period will have to be repriced. Any claims processed in the interim period will result in either positive or negative orphan units. If you are going to reprocess the claims and either pay additional or claw back overpayments, then this method will work for you.
150 150  
151 -__Annual Adjustment__ – The transactions for the interim period would be unaffected and the active member values would be adjusted at the final once off date.
159 +(% style="color:#2980b9" %)__Annual Adjustment__(%%) – The transactions for the interim period would be unaffected and the active member values would be adjusted at the final once off date.
152 152  
153 -**NB!** With both methods, if you were processing claims for the period AFTER the Final rate was declared for, these claims would also create orphan units. It is best practice to hold payment of claims until the Final Rate is declared.
161 +(% style="color:#2980b9" %)**NB!** (%%)With both methods, if you were processing claims for the period AFTER the Final rate was declared for, these claims would also create orphan units. It is best practice to hold payment of claims until the Final Rate is declared.
154 154  
155 155  
156 -=== Final – Monthly Retrospective Adjustment ===
164 +=== (% style="color:#2980b9" %)**Final – Monthly Retrospective Adjustment**(%%) ===
157 157  
166 +
158 158  To calculate the monthly retrospective adjustment for the period, use the Unit Price calculator provided by your consultant. OVERRIDE the Interim prices used in the original calculation spreadsheet with the new final rate:
159 159  
160 160  [[image:Calculating and Loading Interim_Final Rates_html_163d76866478adfc.png||height="209" width="463"]]
... ... @@ -163,11 +163,11 @@
163 163  
164 164  [[image:Calculating and Loading Interim_Final Rates_html_aeedf1ec7013a979.png||height="178" width="91"]]
165 165  
166 -Double Click on the “UPs” button for the product you want to update:
175 +Double Click on the(% style="color:#2980b9" %)** “UPs”**(%%) button for the product you want to update:
167 167  
168 168   [[image:Calculating and Loading Interim_Final Rates_html_559d28bc8ecfc4a0.png||height="100" width="381"]]
169 169  
170 -Click on the “New Used Ups” button at the bottom of the screen:
179 +Click on the (% style="color:#2980b9" %)**“New Used Ups” **(%%)button at the bottom of the screen:
171 171  
172 172  [[image:Calculating and Loading Interim_Final Rates_html_7126ffabb5613f89.png||height="59" width="131"]]
173 173  
... ... @@ -175,17 +175,17 @@
175 175  
176 176  [[image:Calculating and Loading Interim_Final Rates_html_fe124aaa0aea5a6d.png||height="143" width="259"]]
177 177  
178 -In this scenario you will need to **reprice** the transactions for the period. While on the Parent, go to
187 +In this scenario you will need to (% style="color:#2980b9" %)**reprice**(%%) the transactions for the period. While on the Parent, go to
179 179  
180 -Accounts → Unit Price Management:
189 +(% style="color:#2980b9" %)Accounts → Unit Price Management:
181 181  
182 182  [[image:Calculating and Loading Interim_Final Rates_html_570535c211e85663.png||height="191" width="86"]]
183 183  
184 -Locate the “**Link your investments**” section:
193 +Locate the (% style="color:#2980b9" %)“**Link your investments**” (%%)section:
185 185  
186 186  [[image:Calculating and Loading Interim_Final Rates_html_b993779320601de0.png||height="103" width="573"]]
187 187  
188 -Click on the **third** “Select” button – Reprice the cashflows for the selected Investment Policy’ section.
197 +Click on the (% style="color:#2980b9" %)**third**(%%) “Select” button – Reprice the cashflows for the selected Investment Policy’ section.
189 189  
190 190  In the screen that opens leave the policy row blank, populate the date range you want to link, “Check” = No, and “Confirmed Prices Only” = No.
191 191  
... ... @@ -195,13 +195,14 @@
195 195  
196 196   [[image:Calculating and Loading Interim_Final Rates_html_42d6c79cb5c90d09.png||height="164" width="407"]]
197 197  
198 -**NB!** If there are transactions that were processed AFTER the year end date, you will need to recalculate the unit prices for that period and reprice the transactions. The reason for this is that the unit price has changed at the year end, which then affects all unit prices thereafter. Follow the exact same procedure detailed above, but for the new year and utilising the new interim price for that year.
207 +(% style="color:#2980b9" %)**NB!** (%%)If there are transactions that were processed AFTER the year end date, you will need to recalculate the unit prices for that period and reprice the transactions. The reason for this is that the unit price has changed at the year end, which then affects all unit prices thereafter. Follow the exact same procedure detailed above, but for the new year and utilising the new interim price for that year.
199 199  
200 -=== Final - Annual Adjustment ===
209 +=== (% style="color:#2980b9" %)**Final - Annual Adjustment**(%%) ===
201 201  
211 +
202 202  For an Annual Adjustment you will need to calculate the closing unit price via an Asset Liability match. To do so follow this procedure:
203 203  
204 -**Liabilities:**
214 +(% style="color:#2980b9" %)**Liabilities:**
205 205  
206 206  While on the Parent, run the batch ‘Parent Investment Member Product’ at the year-end date:
207 207  
... ... @@ -216,8 +216,9 @@
216 216  
217 217  The report shows values for Active Members, Exited Members, and a combined total for both. If there are Exited Member values in the product you are calculating, you need to ascertain if the exits have been paid (call the Parent Investment Member Product report using the ‘By Member’ option). If they have been paid, they must be excluded from the Unit Price calculation.
218 218  
219 -**Assets:**
220 220  
230 +(% style="color:#2980b9" %)**Assets:**
231 +
221 221  The total asset value is usually provided by the Actuary / Fund Accountant.
222 222  
223 223  To calculate the closing unit price at year end, you divide the total asset value by the total UNITS in the product.
... ... @@ -232,20 +232,21 @@
232 232  
233 233  Total Assets = 49 832 892.00 (as received from Accounts)
234 234  
235 -**Unit Price** = 49 832 892.00 ÷ 276442.52339 = **180.264929537**
246 +(% style="color:#2980b9" %)**Unit Price**(%%) = 49 832 892.00 ÷ 276442.52339 = (% style="color:#2980b9" %)**180.264929537**
236 236  
237 -**Allocating on Everest:**
238 238  
249 +(% style="color:#2980b9" %)**Allocating on Everest:**
250 +
239 239  We now need to adjust the Unit Price on Everest. While on the Parent, go to Accounts → Investment Products:
240 240  
241 241  [[image:Calculating and Loading Interim_Final Rates_html_aeedf1ec7013a979.png||height="178" width="91"]]
242 242  
243 243  
244 -Double Click on the “UPs” button for the product you want to update (note that in this example we need to update the price for BOTH products):
256 +Double Click on the (% style="color:#2980b9" %)**“UPs” **(%%)button for the product you want to update (note that in this example we need to update the price for BOTH products):
245 245  
246 246   [[image:Calculating and Loading Interim_Final Rates_html_559d28bc8ecfc4a0.png||height="100" width="381"]]
247 247  
248 -Click on the “New Used Ups” button at the bottom of the screen:
260 +Click on the (% style="color:#2980b9" %)**“New Used Ups”**(%%) button at the bottom of the screen:
249 249  
250 250  [[image:Calculating and Loading Interim_Final Rates_html_7126ffabb5613f89.png||height="50" width="112"]]
251 251  
... ... @@ -259,13 +259,13 @@
259 259  
260 260  [[image:Calculating and Loading Interim_Final Rates_html_570535c211e85663.png||height="170" width="76"]]
261 261  
262 -Locate the “**Link your investments**” section:
274 +Locate the (% style="color:#2980b9" %)“**Link your investments**”(%%) section:
263 263  
264 264  [[image:Calculating and Loading Interim_Final Rates_html_b993779320601de0.png||height="107" width="593"]]
265 265  
266 -Click on the **fifth** “Select” button – ‘Update used product prices from the ‘Start Date’ to the ‘End Date’ section.
278 +Click on the (% style="color:#2980b9" %)**fifth**(%%) “Select” button – ‘Update used product prices from the ‘Start Date’ to the ‘End Date’ section.
267 267  
268 -In the screen that opens, select the product you want to update, date range must be the year end, and select “Test” in the **Custom 1** field. The Parent should be pre-populated but please do check it.
280 +In the screen that opens, select the product you want to update, date range must be the year end, and select “Test” in the (% style="color:#2980b9" %)**Custom 1**(%%) field. The Parent should be pre-populated but please do check it.
269 269  
270 270   [[image:Calculating and Loading Interim_Final Rates_html_9c7ad50c95447944.png||height="96" width="258"]]
271 271  
... ... @@ -283,8 +283,9 @@
283 283  
284 284  To test the values, you can run the “Parent Investment Member Product” batch to see that the total member values now match the total asset value.
285 285  
286 -**NB!** If there are transactions that were processed AFTER the year end date, you will need to recalculate the unit prices for that period and reprice the transactions. The reason for this is that the unit price has changed at the year end, which then affects all unit prices thereafter.
287 287  
299 +(% style="color:#2980b9" %)**NB!**(%%) If there are transactions that were processed AFTER the year end date, you will need to recalculate the unit prices for that period and reprice the transactions. The reason for this is that the unit price has changed at the year end, which then affects all unit prices thereafter.
300 +
288 288  Use the unit price calculator to calculate the new prices for the following year:
289 289  
290 290   [[image:Calculating and Loading Interim_Final Rates_html_649a53d74e537d43.png||height="116" width="112"]]
... ... @@ -294,11 +294,11 @@
294 294  
295 295  [[image:Calculating and Loading Interim_Final Rates_html_aeedf1ec7013a979.png||height="178" width="91"]]
296 296  
297 -Double Click on the “UPs” button for the product you want to update:
310 +Double Click on the (% style="color:#2980b9" %)**“UPs” **(%%)button for the product you want to update:
298 298  
299 299   [[image:Calculating and Loading Interim_Final Rates_html_559d28bc8ecfc4a0.png||height="100" width="381"]]
300 300  
301 -Click on the “New Used Ups” button at the bottom of the screen:
314 +Click on the (% style="color:#2980b9" %)**“New Used Ups”**(%%) button at the bottom of the screen:
302 302  
303 303  [[image:Calculating and Loading Interim_Final Rates_html_7126ffabb5613f89.png||height="59" width="131"]]
304 304  
... ... @@ -307,15 +307,15 @@
307 307  [[image:Calculating and Loading Interim_Final Rates_html_fe124aaa0aea5a6d.png||height="143" width="259"]]
308 308  
309 309  
310 -You will need to **reprice** the transactions for the period. While on the Parent, go to Accounts → Unit Price Management:
323 +You will need to (% style="color:#2980b9" %)**reprice**(%%) the transactions for the period. While on the Parent, go to Accounts → Unit Price Management:
311 311  
312 312  [[image:Calculating and Loading Interim_Final Rates_html_570535c211e85663.png||height="191" width="86"]]
313 313  
314 -Locate the “**Link your investments**” section:
327 +Locate the (% style="color:#2980b9" %)“**Link your investments**”(%%) section:
315 315  
316 316  [[image:Calculating and Loading Interim_Final Rates_html_b993779320601de0.png||height="114" width="630"]]
317 317  
318 -Click on the **third** “Select” button – Reprice the cashflows for the selected Investment Policy’ section.
331 +Click on the (% style="color:#2980b9" %)**third**(%%) “Select” button – Reprice the cashflows for the selected Investment Policy’ section.
319 319  
320 320  In the screen that opens leave the policy row blank, populate the date range you want to link, “Check” = No, and “Confirmed Prices Only” = No.
321 321  
... ... @@ -327,7 +327,6 @@
327 327  
328 328  
329 329  
330 -
331 331  (% style="text-align: center;" %)
332 332  == (% style="color:#2980b9" %)**Disclaimer and Copyright**(%%) ==
333 333  

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