For income streams paid to a dependant from a deceased member's accumulation account, use the below steps as a guide to make the payment:
- If the date of death is other than 1 July, complete the Create Entries process to update the balance;
- Add the pension account for the dependant;
- Input a date of death for the death of the member.
For payments made to a non-dependant as a lump sum, refer to How to Enter Rollover or Lump Sum Payments.
See also: Reversionary pensions, click here.
Enter Date of Death
You must enter a date of death for the contact through the Contacts screen.
Create Entries Process
The date of death in this example was 25/04/2015. We will need to create entries up until the day before to update the member balance (24/04/2015).
|From the Main Toolbar, go to Compliance.
|Select Period compliance from the list.
Follow the steps to complete the Create Entries process:
- Change the Create Entries Period, input the following dates 25/07/2014 - 24/04/2015.
Select Create Entries.
Create Beneficiary (Death Benefit Transfer or Reversionary) account
If the dependant does not have an existing account complete the following:
- Create a new accumulation account for the dependant;
- Transfer the balance to the new account;
- Commence the pension (income stream) by converting the accumulation account to pension.
If the dependant already has an existing accumulation account you can do one of the following:
- Transfer the balance to the existing accumulation account and then commence a part pension from this account;
- Input a temporary cease date in the existing accumulation account and then create a new accumulation account for the dependant. Once the transfer is complete, remove the temporary cease date from the existing accumulation account and input a cease date in the second accumulation account.
1. Add Dependant Account
- From the Member List (Member >> Member List), select New Member Account and from the drop down list below, select New Accumulation Member.
- Input the dependant's personal details. If the dependant has been added to the Contacts list in Simple Fund 360 (see Getting Started: Add a Person) begin inputting their name into the Select Member From Contacts search bar and select their name from the drop down list that appears below.
- Simple Fund 360 will create a MEMBERCODE based on the member's name (which is editable).
Once you have saved the member account, the MEMBERCODE is no longer editable.
Input the following details of the member.Account DetailsExplanation
Account Description Insert an account description. This is a mandatory field. For example, input Death Benefit Pension. Start Date Input the date the member joined the fund. Service Period Start Date Input the date the member began receiving contributions from their latest employer.
5. Select Save to add the member to the fund or Cancel to abort the change.
2. Internal Transfer
Use the Internal Transfer function to complete the death benefit payment.
3. Commence Pension
Refer to Commencing a Pension for instructions on switching the dependant account from accumulation to pension.
The pension balance and the tax-free and taxable components will be the same as the primary pension.
4. Input end date for deceased member
|From the Main Toolbar, go to Member.
|Select Member list.
From the Member List, select the deceased member.
Under the Account Details section, input the internal transfer date in the End Date field.