This article explains how to process a pension drawdown event in Class. The screen allows you to:
- Proportion a pension payment across selected members or accounts
- View pension account information for all members from one screen
- Access the drawdown history for all members for the financial year
Navigate to Fund Level > Transactions > Member Payments > Pension Drawdown
- Enter Payment Date the date of pension payment
- Enter Description (defaults to Pension Drawdown)
- Enter Payment Amount (net) total amount
- Enter This Payment (net) to split amount paid to each member if applicable or click Proportion instead
- Enter the PAYG allocated across all selected accounts
- Click Proportion this will automatically allocate pension payments across the selected pension accounts
The proportion functionality will allocate pension payments automatically against selected accounts for a member or across multiple members. It works by allocating payments to pension accounts with the checkbox selected.
The amounts allocated will be based on the Proportion of the amount Remaining in Plan. This is based on the amount selected in the pension review or if none has been saved based on the minimum pension for that pension account less payments allocated already.
Once the percentage of the net yearly planned amount is calculated, the pension payment and PAYG are allocated in the same ratio to the selected accounts.
For example if 20% of the net remaining amount is being consumed, then 20% of the remaining PAYG amount is then also consumed. If an account has zero net remaining, then it is not included in the proportion algorithm.
The proportion functionality will allocate up to the Remaining in Plan only. If the Proportion could not consume the entire amount to be allocated then a warning message will be displayed indicating how much remains to be allocated. The user can then update the fields indicated to allocate the balance of the payment and PAYG component manually.
On this screen you can access a summary for all pension accounts for the financial year.
- The relevant pension account
- The period the displayed data starts from
- Tax Free (this represents the tax free component of the pension balance as a percentage)
- Balance (this is the balance of pension as at Period Start Date)
- Minimum (is the minimum pension drawdown required for the year)
- Maximum (is the maximum pension drawdown required for the year where applicable)
- Yearly Selected (Gross) (Gross pension specified in the prepared pension review)
- Year to Date (Gross) (Gross pension paid year to date)
On this screen you can access the drawdown history for all members for the financial year.
Refer to Pension Review for a complete view of pension minimums.