1.20 Dividend Hand-off and Trailer Fee Hand-off

This topic provides information about the Dividend Hand-off and Trailer Fee Hand-off details.

Dividend and Trailer fee handoff in Pension module from TA allows you to generate relevant orders in Pension.

On allocation of Dividend and Trailer fee transactions (for pension investment accounts) in TA, the same will be handed off to Pension module using the interface ID.

(IF20192130001601) in TA. This allocation hand-off interface will have the allocation details of the following transactions:

Dividend reinvestments

The dividend reinvestment transactions in TA will generate investment transaction (IV) in PAS.

Negative dividends

The negative dividend transactions in TA will generate withdrawal transactions (WD) in PAS.

Trailer fee redemptions

The trailer fee transactions in TA will generate withdrawal transactions (WD) in PAS.

In Pension module, the system will import allocation details using the interface ID (IF20192130001307). The unit balance will be updated for the party.

• For the system generated dividend and trailer fee allocation details, the system generates relevant investment/ withdrawal orders.
• Such orders will be stamped with the new order sub types 2 and 3.

Table 1-10 Order Type details

Order Type	Order sub type Value	Order sub type	PARAMCODE
IV	2	Reinvestment Transaction from TA	PASIVTXNSUBTYPE
WD	2	Periodic Fee Transaction from TA	PASWDTXNSUBTYPE
WD	3	Negative Dividend from TA	PASWDTXNSUBTYPE
WD	4	Pension Charge Withdrawal	PASWDTXNSUBTYPE

Note:

• Unit based stock dividend transactions are not applicable for pension assets.
• The system will not consider trailer fee redemptions and dividend re-investments of pension accounts for NAV correction or corporate actions in TA.
• Periodic incentive (LEP) is not supported.

Trailer Fee charges

The system will maintain trailer fee in TA. TA module will hand off trailer fee transactions details post allocations.

On importing the allocation details of the trailer fee transactions, pension module will generate the withdrawal orders. However, you cannot reverse or modify these orders both in TA and pension systems. The system supports only View mode in PAS.

The system will tag withdrawal orders generated for trailer fee transactions with order type 2 (Periodic fee Transaction from TA).

Payment mode of the generated order will be always Transfer (T), even if the dividend generated with payment mode as Cash.

Reinvestment

The TA system handles dividend declaration and processing. TA will hand off reinvestment transactions details post allocations.

On importing the allocation details of the re-investment transactions, pension module will generate the investment orders with the application date as the order instruction date. However, you cannot reverse or modify these orders both in TA and pension systems. The system supports only View mode in PAS.

If you need to reverse or re-process these UT transactions in TA, then the same has to be handled outside the system.

The system will tag investment orders generated for reinvestment transactions with order type 2 (Reinvestment Transaction from TA).

Payment mode of the generated order will be always Transfer (T), even if the dividend generated with payment mode as Cash.

The system supports negative dividend and multiple dividends.

The system will generate withdrawal order for negative dividend, if any, and the same will be shown in withdrawal screen with the order type 3 (Negative Dividend from TA). You can search based on Withdrawal Order Type to filter such orders in withdrawal summary (PASWITHD) screen.

Table 1-11 Sample Transaction

TA		Reference Number	Pension	Reference Number	Order Sub Type	Description
Transaction Number			Transaction Number
Reinvestment	0220171100 000055	REINV	V201500200 81509	0220171100 000055	2	Reinvestment Transaction from TA
Negative Dividend	0320171000 000010	NEGDIV	WD2015002 0000101	0320171000 000010	3	Negative Dividend from TA
Periodic Fee	0320171000 000017	PERIODICADJ	WD2015002 0000102	0320171000 000017	2	Periodic Fee Transaction from TA