1.27 Pension Ongoing Charge Withdrawal Batch

This topic provides the systematic instructions to compute the pension charge and generates the withdrawal order.

A pension ongoing charge withdrawal batch with an EOD sequence computes the Pension charge and generates the withdrawal order.

The system uses Portfolio AUM to decide the return value from the charge details maintained.

The system calculates annual maintenance charge as follows to decide the return value in case the charge has multiple slab.

Portfolio AUM = Sum of all fund AUM

Sum of Fund AUM = Sum of each fund (latest available Units * NAV of current date)

Note:

NAV import should be done prior to EOD in Pension module. In case NAV is not available on the processing day, the system will consider the latest NAV available for processing.

The system will derive Portfolio AUM and take return value at portfolio Level AUM and applied at fund level.

Withdrawal order equal to sum total charge amount will be generated at the portfolio level.

In case any party does a 100% withdrawal, if the IA want to recover Ongoing fee, system will compute the same and the same will be shown in ‘Recovery Amount’ field which is being introduced now in settlement details of Withdrawal Details screen (PADWITHD).

The system will thereafter update the settlement amount of the withdrawal screen after deducting recover amount.

Default bank account from PADINVAC screen for the party will be defaulted in settlement section or in IA Account.

Recovery amount is computed during allocation handoff, by applying sum (order amount at asset level) and computing return value on the sum. Order amount at asset level in PENSION order, is the Net settlement amount of respective redemption transaction in TA for the asset.

In case ongoing fee process date happens to be a holiday, then by default next working day will be the processing date.

Example 1

Annual Charge Maintenance

Charge Maintenance - PADCMDET

Table 1-35 Charge Maintenance - PADCMDET

Charge ID	From Amount	To Amount	Return Value
ANNCHG	0	10000	2%
-	10000	35000	1.50%
-	35000	50000	1%
-	50000	999999999	0.125%

Table 1-36 Process date details

Next Process Date	Last Process Date	Fee Txn Generation Date
1-Jan-16	1-Jan-15	1-Jan-16

Annual charge calculations

Table 1-37 Annual charge calculations

Party ID	Portfolio ID	Account ID	Instrum ent ID	Asset ID	Unit Balalnce	NAV	Asset wise Balance Amount	Portfolio balance amount	Charge Amount
GREY42	EMP RMND	IN201500 20000341	MSTRST	NOR MF1	100	8.126	812.6	-	-
-	-	-	BSTRST	NOR MF2	200	9.127	1825.4	2638	52.76
-	EMP YMND	IN201500 20000342	MSTRST	NOR MF1	550	8.126	4469.3	-	-
-	-	-	BSTRST	NOR MF2	487	9.127	4444.849	8914.149	178.28298
-	EMP YVOL	IN201500 20000343	MSTRST	NOR MF1	113	8.126	918.238	-	-
-	-	-	BSTRST	NOR MF2	1045.5	9.127	9542.2785	-	-
-	-	-	GOOG-LEINS	NOR MF3	189.9	11	2088.9	12549.4165	188.2412 475

Charge amount derived from the party ID, portfolio ID, account ID, Instrument ID, Asset ID, based on the market ratio.

Example 2

Table 1-38 Fund details with withdrawal transactions

FUND ID	UNITS	NAV	MV
NORMF1	100	10	1000
NORMF2	200	20	4000
NORMF3	3000	30	9000

Total AUM = 14000

Assuming load slab is 2%, system will apply 2% for each of the fund and generate withdrawal transactions.

Amount so derived will be the charge payable by the Party.

Charge amount derived from the party ID, portfolio ID, account ID, Instrument ID, Asset ID, based on the market ratio, i.e., 1:4:9

Table 1-39 Instrument fund details

Instrument	Fund ID	Market Value	Asset Level Split value
INSTR1	NORMF1	1000	20
INSTR1	NORMF2	4000	80
INSTR1	NORMF3	9000	180
-	-	-	280

The system will generate withdrawal orders for the amount computed with the below mentioned order subtype.

Table 1-40 Order Type details

Order Type	Order sub type Value	Order sub type	PARAMCODE
WD	4	Pension Charge Withdrawal	PASWDTXNSUBTYPE

Ongoing charge computation will take the latest charge mapped during the process date.

Example 3

In case 100% withdrawal is done before Annual charge is computed, the system will recover the same and deduct from the settlement amount payable to the party.

Table 1-41 Fund details with withdrawal done before annual charge computation

FUND ID	UNITS	NAV	MV
NORMF1	100	10	1000
NORMF2	200	20	4000
NORMF3	3000	30	9000

Total AUM = 14000

Assuming load slab is 2%, system will apply 2% on Net order amount (Amount excluding TA loads)

Assume, TA load - 100

Net Order amount will now become = 14000-100 =13900

System will apply 2% load on above net order value 13900,i.e. – 13900*2% = 278

For this 278, system will not generate any withdrawal transactions in PAS, but the same will be deducted from the amount payable to the party i.e 14000-278=13722 will be paid.

Recovery Amount - 278

Settlement Amount - 13722