Overview
Simple Fund 360 allows you to combine pension accounts using the Internal Transfer/Commutation Wizard.
The wizard will allow you to select one or multiple pension accounts, move these accounts back into accumulation and provide an option of starting a new pension at the end.
Note: If this is to be completed on a day other than 01 July, The Create Entries Process is required to be completed one day prior to the event to update the member balance. (e.g. commutation is on 01 May, then create entries is required one day before on 30 Apr)
Instructions
| From the Main Toolbar, go to Member. |
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| Select Member list from the list. |
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| Select Member Transactions and from the drop down list, select Internal Transfer/Commutation. |
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1. Select Transfer Type
Next to the Select Transfer/Transaction Type heading, select Commute Pension Account from the drop down list.
2. Who is the Commutation for?
Select the member undertaking the commutation and select the pension account(s) that are being commuted.
3. Input the Date of the Commutation
Input the date of the transfer.
4. Select Accumulation Account
Select the accumulation account to transfer the balance to.
Select the member's existing accumulation account. If the member does not have an existing accumulation account, select New Accumulation Account and create a new MEMBERCODE for the account.
Where an account has been closed, users can click into that account, remove the end date and select save to re-open it. Once the account is re-opened, system will allow it to be selected.
Note: Members of an SMSF can only have one accumulation account per ATO guidelines.
5. Is the entire balance being taken out?
Select Yes
Note: If yes is selected a cease date (date of transfer) will be input for the account(s) being transferred out of.
Transfer Balance Cap
This section will display when posting transactions from 1 July 2017.
Under the Transfer Balance Cap, select the relevant Event:
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MCO - Member Commutation
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CC1 - Commissioners Commutation Authority amount commuted in full
- STO - Income stream stops being in the retirement phase
Refer to the Event Types for Transfer Balance Account Reporting help for more details on the events.
Simple Fund 360 will display the Current Account Balance, Cap Limit, Cap Remaining Prior To Pension Commencement and Cap Remaining After Pension Commencement.
If the individual is a member of another fund in Simple Fund 360, the Current Account Balance will display the total of all pension accounts that this member has, provided the other fund(s) are in the same financial year.
The Transfer Balance Dashboard will be updated when the transaction is saved.
6. Confirm and Save the Transfer
View the commutation summary.
Select Save & Prepare Documents to post the transaction.
To abort the changes, click Cancel.
Reports Screen - Re-prepare Documents
If you have selected Save & Close or Save & Prepare Documents, you can re-prepare these documents from the Reports screen. These documents are available under the Letters/Minutes section.
If a fund has more than one commutation, all commutation documents will be prepared in the one pack.
Select Options | Download PDF.
7. Start a new pension with the combined balance in the Accumulation account
Now start a new pension with the combined balanced.