Rebase a Scenario in New Year
When you open a Client's scenario with a starting year prior to the current year (e.g. in 2022 you open a scenario that had the start year of 2021), you will no longer see the Run Scenario button at the top of the Planning page.
Instead, in place of the Run Scenario button, you will see Rebase Scenario. The Rebase Scenario button will allow you to "re-base" your original projections to the new base year in a new version of the original. Rebasing a scenario will not replace or delete the original scenario. You will still be able to view the original but to make edits you will need to use the Rebase function.
When you click the Rebase Scenario button the following dialogue box will appear.
Once the Rebase is complete, the new scenario that starts in the current year will be displayed.
What happens during the rebase?
The existing scenario is copied and the start year is changed to the new year. End-of-year projected values from the previous year's scenario are automatically entered as the start-of-year values in the rebased scenario. You have a new, up-to-date scenario for your clients, created in minutes.
NOTE: If you are trying to rebase scenarios created more than one year in the past, please additionally review and update the RRSP and TFSA contribution room to make sure these values are current.
What changes are made with respect to the Government Benefits in the rebased scenario?
If a client is not yet receiving government benefits, Snap will take the original CPP/QPP percent of maximum (at age 65) and in the rebased version, apply this percent of maximum to the new CPP/QPP maximum value for this individual to calculate the Annual Retirement pension amount. The same calculation is performed for the rebased OAS Annual Pension amount.
If a client is receiving government benefits, Snap will use the original value that was entered for CPP/QPP Annual Retirement Pension, then index it based on the inflation rate for CPP/QPP in the scenario. The Percent of Maximum (at age 65) remains unchanged. The same calculation is performed for the rebased OAS Annual Pension amount.
A Detailed Example
For illustration purposes, let's work with a scenario created in 2021 with the original start year of 2021 and the current year being 2022. When you click Rebase Scenario, a new version of the scenario is created.
The original scenario will remain accessible as long as you don't manually delete it, and the new scenario will have the same title with the addition of (rebased) at the end of it. The rebased scenario will no longer contain the first line of the projection as 2021, it will be updated to start in 2022.
You can then rename the scenario if you wish.
The rebase takes the display values on the Planning page for 2021 (end of year values) from the original scenario and uses those as the starting point for income, assets and debt in 2022. You can see these values by clicking the Income, Assets, and Debts buttons.
This is illustrated in the screen captures below for the assets.
The scenario was created in 2021, with asset columns displaying the end of the year projected values under the Value column.
Here is the Capital Assets table for the rebased scenario with the values automatically set to the end of the year 2021 values from above. Note that the non-registered account is joint, and therefore the full value of the account is displayed rather than John's portion only. You can update the values based on actual 2022 data in your rebased scenario.
The starting Balance for the debts in 2022 will also be updated to the end-of-year balance from 2021.
It is important to review the scenario as there will be areas that are automatically adjusted for you based on the inflation settings and updated new year financial and tax data. These areas include but aren't limited to: income amounts, asset values and costs, RESP grants, debt balances, government benefits, past contribution room, tax settings (e.g. additional amounts), charitable donations, etc.