From 6 April 2003, trustees and administrators of most money purchase schemes must provide each member with an annual illustration of the future pension that could be payable on retirement - in current monetary terms.
This applies to group money purchase schemes, money purchase AVC arrangements and stakeholder schemes. Trustees/administrators can delegate production of SMPIs to their pension provider, but remain responsible for delivery.
The calculation for each scheme member must be done according to the official technical specification, TM1, as published by the Institute & Faculty of Actuaries.
Aries has a solution for this - the Aries SMPI Calculation System - which does the full job. In particular, it
- enables data entered for individual cases to be saved
- carries out the standard calculation, as per TM1
- runs sets of SMPI cases in batch mode
- reports on the technical details of the calculation
- prints out a report for the scheme member
Aries already has an established reputation for reliability of its pensions calculations, as incorporated in the Aries Pensions System (APS). The Aries Maximum Benefits and/or Aries Maximum Funding programs are used by practically all the major UK providers.
Aries SMPI comes as a separate package, and is priced on a sliding scale depending on the the size of operation. Pricing starts at £750 pa + VAT, allowing for up to 100 illustrations pa; then £1,950 for up to 1,000; and £5,950 for up to 10,000. Intermediate prices are available on request, also for numbers over 10,000.
Aries SMPI runs under Windows, and is fully networkable for versions from Windows 95 onwards.
Bonus feature
The Aries SMPI Calculation System also offers alternative illustrations based on user-defined assumptions for investment return, salary growth & inflation.
