8.5 Reversing Rollover Instructions

You can reverse the rollover instructions for a contract even if the child contract has been generated for the same. To reverse the rollover instruction for which the system has already processed the child contract, you have to first reverse the child contract itself before you reverse the rollover instructions maintained for the parent contract.

However, the system does not perform any cross validation to ensure that you reverse the rollover instructions if you reverse the child contract that has already been processed. In case you do not reverse the rollover instructions, the system rolls over the parent contract on the value date of the rollover based on the instructions captured. However, in this case, it does not create any child contract. You have to manually create the child contract (through the Drawdown Contract Online screen) for such rollovers.

The child reversal will move the funds to the parent.

Note:

• You may reverse the rollover instruction and re-process the child contract any number of times before the value date of rollover.
• The system triggers the VAMB event for the parent contract to indicate an increase in principal on rollover. When you reverse such instructions, the system also reverses the balances to the extent of the increase (VAMB amount). However, it does not trigger any event to indicate such a reversal.
• When you reverse a partially processed child contract, the system does not reverse the VAMB amount.
• When you reverse a consolidated rollover instruction, the system triggers the CREV event in the parent contract to indicate the same.