Help for MnPFDecrementTable
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We set out below further information on the parameters used
by MnPFDecrementTable.
The number of ‘status’ codes to be included in the decrement
table is NumberStatusEntries. A status code might be. The aim of the
decrement table is to characterise the proportion of scheme members (or to be
more precise the proportion of their who have a given status at time who
will have moved to a different The decrement table (using yearly ages) contains
MaxAge - MinAge +1 entries per ‘start’ status and per ‘end’
status, i.e. the array returned will have entries. If individual
who starts year in status and ends year in status is then
first entries in output are
decrement rates ´ decrement fractions
applicable to individuals starting
with youngest (at age MinAge), next are for ,
etc.
Table is then derived from 5 input arrays: DecrementAge
and DecrementStatusCode indicate age and status at start of year
(any age between MinAge and MaxAge, any status), DecrementRate
and DecrementBecomesCode provide (annual) rate of switch from original
status to new status over year and what the new status is (where new ≠ old).
DecrementFraction is proportion of benefit that is retained if a status
switch occurs.
Rates of staying with the same status are derived by
combining together decrements that involve movements. This combining can be
done arithmetically or geometrically. If for a given starting status the
movement (and fraction) to new status are
(and
)
(for a given age ) and there are statuses)
then the output is calculated as follows:
Arithmetic:
Geometric:
If then:
If then: