Support Query
What are the steps to commence a pension starting partway through the year (other than 1 July)?
Solution
Two scenarios are presented below based on your current fund processing approach.
- Scenario 1: Transactions uploaded and matched through the Connect screen on a regular basis (such as the BGL Bank Data and Contract Note services)
- Scenario 2: Manual data entry for transactions once statements and other supporting documentation have been received from clients
Note
BGL do not provide accounting or taxation advice. The following is designed to act as a guide for Simple Fund 360 users. It is not designed to be accounting or tax advice and should not be taken as a strict guideline. Other methods that are more suitable may be used instead of these steps.
Scenario 1
- Record income and expenses prior to pension commencement.
Ensure all transactions have been uploaded and matched using SF360's Connect screen and Transaction Matching features to the date of pension commencement.
- Writeback of Tax Affect Accounting
See Tax Effect Accounting for instructions.
Note: If you choose to use tax-effect accounting (for example if you have a fund with both pension and accumulation members), you will need to write back a proportion of PDIT that relates to pension members proportion of assets. This would require you to calculate the proportion, and reduce the relevant amount from PDIT, clearing against the 49300/MEMBERCODE account for the pension member. The pension members proportion of assets can be calculated using the members weightings in the fund (see The Member List for weightings).
- Create entries to the last day before pension commencement.
Refer to The Create Entries Process).
- Commence the Pension
See Commencing a Pension for instructions.
Scenario 2
- Record income and expenses prior to pension commencement
Record all transactions up to the pension commencement date. Refer to Transaction Input for data entry instructions.
- Writeback of Tax Affect Accounting
See Tax Effect Accounting for instructions.
Note: If you choose to use tax-effect accounting (for example if you have a fund with both pension and accumulation members), you will need to write back a proportion of PDIT that relates to pension members proportion of assets. This would require you to calculate the proportion, and reduce the relevant amount from PDIT, clearing against the 49300/MEMBERCODE account for the pension member. The pension members proportion of assets can be calculated using the members weightings in the fund (see The Member List for weightings).
- Create entries to the last day before pension commencement
To complete a mid year create entries, refer to The Create Entries Process for instructions.
- Commence the Pension
See Commencing a Pension for instructions.