The article explains what events will affect a member's Transfer Balance Account (TBA) and how the TBA is tracked in Class for a member.
Navigate to Fund Level > Periodic Processing > TBAR Console > Transfer Balance Account
Tracking a Member's Transfer Balance Account
This screen reflects each member's running Transfer Balance Account to keep track of where they are compared to their Personal Transfer Balance Cap (PTBC).
You may resize the columns width to get the customised view.
- Each member who has Transfer Balance records will display in collapsed view
- Each member's Transfer Balance Account shows Current Total for Transfer Balance, PTBC and Remaining Cap
Refer below information in detail.
- Member Name - Member Name displays as a sub-header
- Account Name - The pension account name, this can be blank (e.g. if TBAR credits related to Limited Recourse Borrowing Arrangement).
- Effective Date - The date that the debit or credit will be applied to the member's Transfer Balance Account.
- Event Date - The date of the TBAR record.
- Event - The TBAR event type.
- Status - Status of a TBAR record; (Initial, Generated, Created, Cancellation Record, Adjustment).
- Cancelled - 'Y' indicates this is a cancelled event to cancel a TBAR event that was previously lodged.
- Debit - This is the transfer balance account debit value. It normally arises from pension commutation, structured settlement contribution.
- Credit - This is the transfer balance account credit value. It normally arises from pension establishment.
- Transfer Balance - This is the running balance of the member's transfer balance account.
- PTBC - This is the Member's Personal Transfer Balance Cap on the event's effective date
- Remaining Cap - Remaining Cap value = PTBC less Transfer Balance. The Transfer Balance Cap that is available to the member.
The effective date for reversionary income streams is 12 months after the TBAR event date. This is when the credit value applies to the member's transfer balance account. The 12 month delay applies to the Transfer Balance credit to the reversionary beneficiary's Transfer Balance Account, not the actual reporting of the TBAR event.
All events that will affect a member's Transfer Balance Account will appear in this screen, including;
- Commencement of retirement phase income streams after 30 June 2017.
- TRIS conversion to retirement phase income streams after 30 June 2017.
- Pension commutation post 30 June 2017,
- Manual TBAR events of the following:
- Limited Recourse Borrowing Arrangement,
- Income Stream stops being in Retirement Phase,
- Personal Injury (Structured Settlement),
- Commutation / Superannuation Income Stream (adjustment),
- The 30 June 2017 closing balances of Account-Based pensions
- Certain legacy pensions including Complying Pensions, Term Allocated Pensions and Flexi Pensions where the 30 June 2017 TBAR value is different from its 30 June closing balances.
The following TBAR records will be not included in the TBA:
Members who are eligible for indexation of their personal transfer balance cap will be shown at Transfer Balance Accounts tab with an additional row for indexation record. As illustrated below, indexation denoting the effective increase (if eligible) in the PTBC column and Remaining Cap column:
TBA Record for a Fund Outside of Class & Manual TBAR Event
Jerry has a retirement income stream with a second fund, not on Class (Industry fund). She has an income stream balance of $589,997.00 and the other fund has lodged TBAR with the ATO previously. The accountant/administrator needs to reflect this balance in Class, so they can track the member's TBA and determine the remaining TBA cap space left. The steps required to process this are as follows:
Navigate to fund level > Periodic Processing > TBAR Console > Manual TBAR Event
- Tick 'Adjustment' checkbox, this will not create a TBAR record that will not be reported to the ATO.
- Once the event is submitted, Jerry's TBA running balance is increased to $1,100,000.