Pension Management

The Integrated Pension Administration System (IPAS) is a solution that has been customized for the automation of the core business operations and processes of pension administration and general financial management. IPAS is a comprehensive pension administration solution that encompasses an extensive member records management, benefits computation and business analytics and reporting facility with full integration with mainstream financial management to ensure the best solution to pension administration needs.

The system is based on the architecture of the Microsoft Dynamics Navision (NAV) system which is an enterprise-wide resource planning platform. In this regard, IPAS functionality can easily be integrated seamlessly to the other core solution modules of NAV such as financial management, human resources management and payroll granules.

The stable financial management granule of the NAV system serves as the backbone of the IPAS system, allowing for automation of mainstream financial processes. Integration with the financial management module allows for easy setup of the chart of accounts, general journals for posting of entries, budgets for different schemes, creation of account schedules, selection of the currency and exchange rates to use among other rich features and functionality.

The integrated pension administration system has functional capability to support the core business processes and compliance requirements for pension administration.
Key functionalities of the Benefits administration module
The Benefits administration module of the IPAS system has the following functional capability:
1. Pension scheme information management – IPAS facilitates tracking of all the information associated with a given scheme such as the scheme name, registration certificate number, vesting period, pension category of scheme (either Defined benefits or Defined contributions scheme), contact details, bank details etc. The system has a simplifies scheme setup facility that allows for definition of the benefits configuration matrix associated with a given scheme such as actuarial / cash factors table, retirement age setup, member posting groups, interest rates, accrual fractions, commutation fractions, guaranteed periods and the pay points setup.

2. Scheme compliance details – IPAS allows for setup and management of pension scheme compliance information, as may be stipulated by oversight organizations such as the Retirement Benefits Authority (RBA). The system has provision for capturing compliance information such as scheme registration date, registration certificate number, status of the scheme regarding filing of trustee deeds and rules, scheme auditors, tax compliance certificates as well as actuarial valuation information for a particular pension scheme.

3. Scheme trustee management – IPAS has provision for capturing interactions and communications between the pension administrator and the trustees, for instance annual general meetings held, all trainings conducted over a specific period e.t.c.

4. Member register – IPAS manages the registration, update and tracking of scheme member details such as pension number, gender, name, date of birth, date of joining or leaving the scheme, monthly contributions, next of kin, member contact details, professional category etc. The member records facility is extensible hence allowing specification of any required information for each member. This sub-module can easily be linked to other core modules such as human resource management.

5. Tracking of scheme membership cycle – IPAS system has dedicated sub-modules for tracking full membership cycle, from the time of member registration/enrollment, active membership, deferred membership and pensionable membership. The system also provides for flexible transition of a member from one membership status to another in accordance to pre-defined scheme setup parameters.
6. Tracking inward and outward scheme movements / transfers – The system allows for both entry and exit to/from a scheme. This facilitates analysis of inward scheme transfers as well as outward scheme transfers. For inward movements, the system records membership information and capital account history from the previous scheme. For outward scheme transfers, IPAS indicates the transferrable capital account amounts on exit from the current pension scheme.

7. Management of periodic member contributions – IPAS allows for importation and tracking of periodic member contributions (employee and employer portions) as well as any other additional / voluntary contributions. The system allows for importation of contribution data from Microsoft Excel spreadsheets. IPAS does relevant validations of the data before allowing its import. The end-user has full control of the imported data which can be verified (using Preview test report functionality) further before posting is done to update the relevant G/L accounts. The system tracks all details associated with the remitted contributions from both the employee and the employer e.g. amount
contributed, effective date, associated cheque number, transaction date e.t.c

8. Interest computation engine – IPAS system has a comprehensive interest computation facility that tracks earned interest on member contributions (employee and employer portion). The system has a simplified setup window for the declared annual interest rate applicable to a scheme for a specific year.

9. Tax computation facility – The integrated pension administration system provides for setup of taxation tables applicable to pension administration. The tax computation facility is flexible enough to accommodate different tax tables with specification of effective dates for the tables. Each tax table has lines that define the tax bracket, tax exempt amount/limit, applicable tax amount for each bracket among other parameters. During member exit processing, the system references the tax computation setup to determine the non-tax allowable amount, the taxable amount, the tax payable and deferred tax applicable to a particular member. Since IPAS in based on the NAV platform, tax computation is mapped to the relevant tax account in the chart of accounts in the financial management granule.

10. Member exit processing facility – IPAS has a dedicated member exit processing sub-module used to compute final benefits for a member on exit. Based on the reason for exit, the system computes the gross amount payable, the taxable amount, the tax payable and the net payable amount. The member exit sub-module allows for generation of member withdrawal worksheets and discharge statements with varying details depending on the scheme category e.g. total contributions made, tax exempt amounts, earned interest, surrender amount, employee entitlement amount, monthly annuity amounts, unutilized tax free amounts etc.

11. Reconciliation – The system simplifies reconciliation of the member balances reflected by the system against total amounts of the received cheques.

12. Document linking facility – IPAS allows for attachment of any scanned documents for more controlled access to such documents. Sampledocuments that may be attached include scheme registration certificates, copies of trustee deeds and rules, tax compliance certificates e.t.c.

13. Report generation - The real-time analytic processing and field filter functionalities that are embedded in the integrated pension administration system facilitate the generation of accurate periodic reports such as:

  •  Scheme membership listing with key details of all members of a given scheme
  •  Member contributions schedule
  •  Closing balances schedule
  •  Periodic Member benefits statement
  •  Member withdrawal worksheet
  •  Consolidated Fund value statement for a given scheme reflecting opening balances, total contributions, fund expenses, benefits paid, withdrawal surrender values and the net interest to be allocated.
  •  Quarterly report submitted to the Retirement Benefit Authority (RBA)

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