This page describes the process required to create a new pension account, as well as establishing the pension. Starting a pension consists of two steps, the first being to create a new pension account, the second being establishing the pension account.
We will run through the following steps;
Step 1: Create a New Pension
Navigate to Fund level > Members > New pension account
- Select Member from the drop-down menu
- Select Pension Type from the drop-down
- Create Account Name/description (The default is 'New Pension Account')
- Enter Start Date the pension will commence
- Click Activate
If you want to start a Transition to Retirement pension (commonly referred to as a TRIS or TTR pension) you need to select Account Based as the pension type in Class. You would also select 'Attaining Preservation Age' as the condition of release for this type of pension.
- Account Based (Account Based Pension - applicable from 01 July 2007 onward)
- Allocated Pension (Pre 30 June 2007 pension product type)
- Complying (Lifetime Pensions, Life Expectancy Pensions, Fixed Term Pensions - all Pre 31 December 2005 products)
- Flexi (Flexi Pension - Pre 31 December 2005 product)
- Non Commutable Allocated Pension ( Pre 30 June 2007 product commonly known as a Transition to Retirement Allocated pension)
- Term Allocated Pension (this product is commonly known as a Market Linked Pension)
Step 2: Establish a New Pension
Once the new account has been created following Step 1 you should navigate to the fund's Browse Members screen and you will be able to locate the new pension account.
The following example will take you through a scenario where the pension is commencing with the member's full accumulation balance on 1 July using the last 30 June period update balance.
Navigate to Fund level > Members > Browse members
- Select the relevant Pension Account
- Click Edit
- Click "Establish this Pension Account"
- Select the Type from the drop-down menu (Options are Establishment From Accumulation Account, Allocated to Account Based Pension Transfer, Revert from Existing Pension or Establish Death Benefit Pension)
- Select the Condition of Release from the drop-down menu (Options are Retirement, Withdrawal of Unrestricted Amount, Attaining Age 65, Attaining Preservation Age, Permanent Incapacity)
- Select either Partial or Full (to select whether the pension will be for the full amount of the member balance or a partial amount of the member balance)
- Click Next
- Review the Pension Purchase Price is correct
- Click Submit
- Click on the Print Commencement Reports button to access all related minutes
If you select a Partial balance you will need to manually enter the Purchase Price under the Establishment Balances tab
Pension Details Tab
- Taxable Proportion (Taxable proportion of new pension)
- Tax Exempt Proportion (Tax exempt proportion of new pension)
- Reversionary Beneficial Name (Enter the name of the reversionary beneficiary)
- Relevant Number (Used for the Centrelink Schedules, typically the pensioner's or their reversionary's life expectancy)
- Pension Term (The term in years of the pension. Not relevant for an account based pensions)
- Total of Previous Commutations (Used for the Centrelink Schedules)
- Death Benefit Pension with original member over 60 (Only applicable pension is from a death benefit - Pension with original member over 60" to force the PAYG = $0)
- Previous Pension Date (This will populate if the pension being started is a transfer from an allocated pension)
Learn to Process your Pension Payments