The money purchase critical yield (MPCY) is a calculator that the Quilter illustration system uses to compare projection results from another provider, to projection results from the Collective Retirement Account (CRA).
The results of the MPCY are displayed in a table on an appendix to an uncrystallised pension projection. An example of the output is shown below:
|At age 60||Existing provider's
projection rate after deducting 2.0% for inflation
|Projected value of the
proposed CRA using existing provider's projection rate
|Critical yield needed for
the proposed CRA to match the existing provider's projected
If the client has two or more existing pension products with other providers, separate illustration inputs are required for each product.