How to start/commence a Pension
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.
To ensure assets are valued at their net market value at the commencement of the pension, we recommend creating entries up until a day before the pension commences.
Navigation
| From the Main Toolbar, go to Member. |  |
| Select Member Dashboard from the list. | |
| Select the Members tab. | |
| Select Commence Pension. |
- Begin by selecting an existing accumulation account to convert:
- Input the details for the new pension account. This includes Commencement Date, Pension Type, Account Description, and Condition of Release:
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Next, confirm the Commencement Balance:
Is the full balance being used for the pension?Yes If Yes, switch the toggle on. If accumulation account is to be ceased after the transfer, select the Cease Original Member Account check box. No If No, switch the toggle off. Ensure to input either the Percentage of members balance or Specific amount being transferred from the existing account. - Select the desired preservation component option. You can also manually edit the amounts as necessary:
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The Transfer Balance Details will display next, outlining the new pension's effect on the Transfer Balance Cap. Review these details, ensuring the type of event selected is correct:
This section will display when posting transactions from 1 July 2017.Under the Transfer Balance Cap, select the relevant Event:
- SIS - Superannuation Income Stream
- IRS - Reversionary Income Stream
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.
- Input the Member Beneficiaries details. this includes Death Benefit and Reversionary nominations:
For Death Benefits, ensure to select First or Second tier to have this displayed in the member's account details.
- Select Save and from the drop-down list, select Save Only. Select Cancel if you wish to abort the changes.
Pension Documents
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 Pension Commencement Documents window 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: