Contribution Limits

To enable Contribution Limits, click the box "Apply Limits to Contribution Changes".

Contribution Limits

The following values are related to the solution that will be provided to the participant. The Minimum Increase Threshold and Maximum Increase Threshold values are limits relative to the current contribution. The Minimum Value and Maximum Value values are absolute limits and do not take the current contribution into account.

Minimum Increase Threshold

The minimum change in funding before the steps in the "Changes to over funded scenarios" are taken. For those in over funded situations, this will increase their contribution as well as adjusting other steps such as social security, retirement age, etc.

For example:A value of 1% would require that the illustration at least increase the client's contribution by 1%, i.e. if a client was current contributing 4%, the proposed scenario would have to at least be 5%.
Note:To use the Minimum Increase Threshold a value greater than zero must be entered otherwise over funded clients will not have their data changed.

Minimum Value

The minimum value that the report will illustrate for the new contribution.  Altering this setting forces contributions to be greater than or equal to this threshold value.  This most often applies to clients who are over funded.

For example:A value of 3% would require that the illustration at least increase the client's contribution to 3%. This would only affect solutions that had less than a 3% contribution.

Maximum Increase Threshold

The maximum change in funding before the steps in the "Changes to under funded scenarios" are taken.  This is the upper limit of how much % of increase you tell TRAK that your clients would approve making.  The maximum increase may not be necessary after the other steps are taken (e.g. adjusting retirement age, social security dependence, etc.).

For example:A 10% value would require that the illustration be altered if the proposed scenario increased the current contribution by more than 10%. I.E. if a client's contribution was currently 4%, the proposed contribution could not exceed 14% without the under funding changes to be implemented.

Maximum Value

The maximum contribution value that the solution will illustrate for the participant. A value of zero ("0%") will mean there is no maximum value.  This is the overall limit on how much total contribution TRAK will suggest.