The Pensions page allows you to define company pension plans for the client or spouse. when the client and/or spouse will begin collecting benefits, and the amount they will collect.
To add a pension to the plan, do the following:
Click the Person Covered drop-down and select the client or spouse.
In the Plan Name box, enter a description.
In the Year Eligible For Benefit box, enter the year the pension will be available. The year must be later than or same as the plan start date and cannot be later than the covered person’s year of death.
In the End Year box, enter the year the Pension will be terminated.
Click the COLA Benefit drop-down and select Yes if there is a cost of living adjustment. The default is No.
Click the Tax Status drop-down and select Taxable or Nontaxable. The default is Taxable.
In the Annual Pension Income field, enter the gross currency amount of the income.
To add a line to the screen, click Add and select Add.
To add a pension from a client record, click Add and select Add from Client. The Add Income to Plan dialog opens.
Click the desired pension and click OK or click New to create a new pension record.
To delete a pension, check the box to the left of the pension and click Delete.
Pensions from Client Records
Any income data with the income type of Pension which has already been defined at the client level (in Client Profile, Financial Info), appears by default in this screen for a new plan. (But only those for which the primary or spouse is the recipient.) Because investment planning is done strictly on an annual basis, some conversion of the information stored at the client level is required:
Start and End dates are specified in Financial Info as day-month-year. Because planning is only on an annual basis, only the year from the Financial Info start date will be used. End date specified at the client level is ignored. In planning, pension end year is assumed to be year of death.
If Income amount is specified with a monthly frequency, it is multiplied by 12.
If income amount is specified as a lump sum, it is not included in the plan.
If there is a nonzero adjustment amount specified, the COLA field is set to Yes, but the actual adjustment amount defined at the client level is ignored. The amount will be adjusted by the inflation amount specified within the market assumptions.