Transition to Retirement Pension

Support Query

How do I commence a Transition to Retirement pension in Simple Fund 360?

Solution

A Transition to Retirement (TRIS) pension is created through the Members | Member List screen. In addition to setting up the TRIS, if the member is still receiving contributions, a corresponding accumulation account can be set up for the member.

This article will guide you through: 

• Setting up a pension account as a TRIS
• Setting up an additional accumulation account
• Posting pension payments from the TRIS

Setting up the Pension Account (TRIS)

From the Main Toolbar, go to Member.
Select Member list from the list.
Select New Member Account.
Select New Pension Account.

1. Select an existing accumulation account to convert. When the account is selected, the current account balance will be displayed.

   To commence a pension in Simple Fund 360, you first need to create an accumulation account and then convert the account to pension. Refer to The Member List on how to add an accumulation account.

   If the pension has started partway through the year, refer to Pensions commencing partway through the year.

2. Is the full balance being used for the pension?

   Yes	If Yes is selected and the accumulation account is to be ceased after the transfer, select the Cease Original Member Account check box.
   No	If No is selected, input either the Percentage of members balance or Specific amount being transferred from the existing account.

3. Select Maintain Current Preservation Components to the question What component would the amount be transferred to? 
   
   

4. Input the date the pension commenced in the fund by entering the Start Date.
   

5. Select the Pension Account Type as Transition to Retirement.

   

   Simple Fund 360 will automatically calculate the tax free proportion for the pension account. You can check the tax free proportion calculated by Simple Fund 360 from the Member List once you have added the pension account.

6. Select Save and from the drop down list, select Save Only. Select Cancel if you wish to abort the changes.

   If you wish to print pension documents, select Save and Prepare Documents.

     Save & Prepare Documents - More Info>>>

   Select  Save & Prepare Documents to prepare the  Pension Commencement Letter and Pension Commencement Minutes.

   

   Select OK to the Save Successful message and SF360 will display the Start New Pension Documentation screen where you can print the Pension Commencement documents.

   

   If you select Close but did not prepare the pension documents, you can re-prepare these documents from the Reports screen. These documents are available under the Letters/Minutes section. To select the relevant member for the documents, select Options >> Select Member prior to document preparation.

   

   

Setting up an Accumulation Account

1. From the Member List screen, select New Member Account and from the drop down list below, select New Accumulation Member.
   
2. Begin typing the name of the member into the Select Member From Contacts search bar and select their name from the drop down list that appears below.
   
3. 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. 
   

4. Input the following details of the member. 

   Account Details	Explanation
   Account Description	Insert an account description. This is a mandatory field. For example, Accumulation - John Jones
   Start Date	Input the start date.

   Nominate Beneficiaries	Explanation
   Add Beneficiary	Select Add Beneficiary to nominate a beneficiary to the member
   Upload Form	Select Upload Form to upload a Binding Death Nomination Form
   View Form	Select View Form to view the Binding Death Nomination Form

   At this stage, you cannot produce the binding death nomination form in Simple Fund 360. This is currently an item on the Wishlist. Please use the feedback form to let us know that you would like this feature added. The more requests we have for a feature, the higher it ranks in the wishlist.

5.  Select Save to add the member to the fund or Cancel to abort the change.

After selecting Save, the following screen will appear:

6. Select No.

To record contributions to the member's accumulation account, see How to Enter Contributions.

Posting Pension Payments

Pension payments can be posted from the TRIS, refer to How to Enter Pension Payments. Payments from a TRIS are capped at 10% of the balance. You need to ensure that this cap is not exceeded.