Overview
Pension commutations can be processed on the Member Dashboard, letting you convert some or all of the pension balance back to accumulation phase, or pay it out as a lump sum.
The commutation wizard will allow you to select one or multiple pension accounts, review the details of the commutation, and move the balance into an existing or new accumulation account.
Navigation
| From the Main Toolbar, go to Member. | |
| Select Member Dashboard from the list. | |
| Select the Members tab. | |
| Select Member Transactions |
Instructions
Select Commute Pension from the member transaction dropdown menu:
Select the pension account(s) being commuted, then enter the Date of the transfer.
Note - Selecting Multiple Accounts
If the member holds more than one pension account, you can select multiple accounts to commute in the same transaction.
Choose where the commuted balance is going:
- Select an existing accumulation account for the member, or
- Select New Accumulation Account to create one, or
- Select Cash Out to withdraw the amount to a nominated bank account.
If Cash Out is selected, choose the bank account the payment will be made from. The nominated bank account is credited, and the corresponding benefits paid/transfers out account is debited.
Review the transfer out balance components for each account:
- If "Do you want to commute the full balance?" is enabled, the full account balance will be transferred, with the current account balance is displaying next to the toggle.
- To commute a partial balance, turn the toggle off. You can then enter either a percentage of the balance or specific amounts for each component.
Review the balance components for the commutation, manually adjusting if required.
- Note: The Total Tax Components and Total Preservation Components shown at the bottom of each tab must both equal the transfer amount for that account:
Review the Transfer Balance Account details:
- Event: Select the relevant triggering event for the transfer.
- Current balance, Cap Limit, Cap Remaining (before transfer), and Cap Remaining (after transfer).
- Cap Remaining (after transferring all selected accounts): the combined remaining cap across all selected accounts.
- Confirm the details of the commutation.
Once satisfied, select Save & Prepare Documents to post the transaction and generate the commutation documents, or Save Only to post the transaction without generating documents:
Once saved, the transactions are posted and appear in the fund's transaction list.
Note - System Generated Transactions for Commutations
Posted transactions follow the format 57100/{Account} (Internal Transfers Out) for each transfer-out account and 56100/{Account} (Internal Transfers In) for the destination account, all with the description set to Full or Partial Commutation: