Support Query
Which preservation components does Simple Fund 360 allocate profit and tax to members?
Solution
The create entries process will allocate profit and tax to the various preservation components as follows:
Member in accumulation phase
- If the age of the member is less than 65 years then profit and tax will be allocated to the preserved component of that member's balance
- If the age of the member is 65 or greater, as they have satisfied conditions profit and tax will be allocated to the unrestricted non-preserved component.
Member in pension phase
- Regardless of the member's age or type of income stream, if the member account has been set up as a transition to retirement, then profit and tax will be posted to the preserved component.
- However, if it is NOT set up as a transition to retirement then profit and tax will be allocated to the unrestricted non-preserved component, regardless of the member’s age.
The preservation components are able to be adjusted by using the Update Member Components tool.