How to convert a TRIS - Retirement Phase to ABP

Overview

The steps below can be used to convert a TRIS - Retirement Phase to an Account Based Pension.

Instructions

From the Main Toolbar, go to Member.
Select Member Dashboard from the list.
Select the Members tab.

1. Select Convert to ABP next to the relevant TRIS member. 
   
   
    
2. Input the conversion date. This will present the balance to convert. If this change is partway through the year, you will need to complete the Create Entries Process up until the day before the change.
   
   
    
3. Confirm the rollover and preservation components. Select Save and Prepare Documents to proceed with the conversion and to prepare documentation. 
   
   

TRIS Pension Conversion Letter/Minutes

Select Save and Prepare Documents to produce the TRIS Conversion Letter/Minutes. These can also be prepared from the Reports screen at a later stage. 

1. From the Main toolbar, select Reports. 
    
2. From the Reports screen, under the Letters/Minutes section, drag and drop the TRIS Pension Conversion Letter/Minute to the landing page.
   
   
    
3. Select Preview Reports to download the documents. These documents can also be included as part of a Report Pack. 

Delete/Reverse a TRIS to Account Based transfer 

To delete/reverse a TRIS to Account Based Pension transfer, in the Transaction List, use the Transaction Filter to filter the screen by the Description "TRIS (Retirement Phase) converted to Account Based Pension".

To improve the filter's accuracy, also filter the Transaction List by the date of the pension transfer. 

Locate the batch of journals presented in the search result and select the checkbox to the left of them. Next, select the Delete icon. 

You can also quickly select all checkboxes by selecting the "Select All" option appearing in the drop-down menu for the top checkbox to the left of Select. 

Note:

Currently, when TRIS (Retirement) is converted to ABP, the system would calculate the annual minimum pension payment using the opening balance of TRIS, treating newly-converted ABP and the previous TRIS as the same income stream. However, following ATO guidance, the better practice might be to cease the TRIS in order to convert to ABP. Therefore, the pension balance would be calculated proportionally based on the conversion date.

BGL is now working on this. At the moment, users can manually commute TRIS to Accumulation and commence ABP from there in order to get the most accurate balance. Please also refer to Commutations

Further ATO Reference:

1. Does a TRIS change into a different kind of superannuation income stream once it is in the retirement phase? 

2. Does the TRIS ‘auto convert’ to an account-based pension in which the TRIS restrictions do not apply?"