This article explains the Browse Pension Reviews screen and how to add a new Pension Review.

The purpose of this screen is to display details of all pension reviews created for a fund and provide an overview of the current pension position for each member.

The Pension Review function serves four main purposes:

• It allows you to utilise the Proportion button when processing pension payments through a transaction rule for a Pension Drawdown, where the pension payments exceed the minimum pension amount. 
• It enables automatic calculation of PAYG withheld.
• Populates some of the fields on Centrelink Schedule and
• It creates minutes that can be generated for trustees and members to sign. 

Navigate to fund level > Members > Browse Pension Reviews

Filters available

1. Pension Account
2. Financial Year using the drop-down menu
3. Using the Group By drop-down menu

Class only calculates pension minimum and maximum for Account Based Pensions. All other types of pension accounts need to be manually calculated and entered.

Creating a Pension Review

Navigate to fund level > Members > Browse Pension Reviews

1. Select the relevant financial year in the filter
2. Select the relevant pension account
   
   
   
   
3. Pension Account code will automatically display
4. Select a Payment Frequency (how often the client drawdown on their pension account)
5. The Start Date will prefill (can be edited)
6. The End Date will prefill (can be edited)
7. The Review Date will prefill to today's date, (can be edited)
8. Select either Interim or Final (Interim should be used if the financial statements have not been finalised and there is a possibility that the opening pension account balance could change).
9. Opening Balance will automatically display
10. Taxable Balance will automatically display
11. Tax Free Balance will automatically display
12. Maximum Payment amount will automatically display (can be edited)
13. Minimum Payment amount will automatically display (can be edited)
14. Choose from the three Amount Strategy options
15. Selected Payment (Gross) will automatically prefill once a strategy is selected
16. Enter a PAYG Amount or click 'calculated payments' and this will calculate the PAYG amount
17. Click Calculate Payments if using 'Net Selected Amount'
18. Net payment is automatically displayed
19. Click Save
20. Click 'Print Statements' to access the pension review minutes

Selected Amount Strategy Options

Class has three options; Minimum (Gross), Selected (Gross) and Selected (Net).  Here are some scenarios as to when they would be applied.

Minimum (Gross)

If you anticipate that only the minimum pension is going to be drawn for the period of time selected then you can click the Calculate and then the Save button.

By default, Class will use this strategy, unless you change it to other options. Class also defaults to this option even where no Pension Review has been created.

Selected (Gross)

If you wish to nominate an amount other than the minimum amount then click the Selected (Gross) radio button.

The Selected Payment (Gross) field will no longer be greyed out. Enter the desired payment amount in the Selected Payment (Gross) field and click Calculate Payments.

The calculated amount of any required PAYG Withholding will display in the PAYG Amount field is applicable. Click Save. If no PAYG amount appears as expected, review what events have been recorded under the relevant member's Member Transition section. 

Once the period review has been completed, click Print Statements, the report screen will open and allow you to print a Pension Period Review Statement.

Selected (Net) 

If you know the member will take a certain amount of cash for the financial year on a net basis after deducting PAYG withholding tax, you can use the Net method to calculate the Gross amount and the correct PAYG withholding.

For Example: This member wants to take $50K of payments for the 2019/20 Financial Year. 

1. Selected (Net) amount is chosen and
2. $50,000 is entered against Selected Payment (net)
3. Clicking Calculate Payments works out the PAYG Amount will be $576
4. Selected Payment (Gross) must be $50,576.00 
5. Click Save