understanding of planned enhancement

Is planned enhancement defined in SA2 notes somewhere? My understanding is that it is there to compensate for any underpayments over the years for with profit policies, or for closed with-profits fund, it is the inherited estate?

Thank you.

 

I have only seen it used in chapter 13. It's probably not in the glossary. I would agree with both meanings you suggested.

However, unless other folk correct me, I think the phrase "planned enhancement" could fit a wider range, and should probably be interpreted in the context that it's used.

For example, in a response to the thread "Ch 6", I used "future planned enhancement" to mean that the mutuals profit for the period is assumed to be "ring-fenced" for the purpose of augmenting future policyholder benefits, and in essence requires reserves to be held to the tune that zeroises the profit now (hence no taxable profits).

 

Thank you for your comment dok87. I agree planned enhancement could fit in more situations, hope someone could add to this thread on the wider definitions.

I think the thread "Ch 6" was the same with my example of inherited estate, in that inherited estate as assets, is also considered as liabilities with the name planned enhancement.

Thank you.