• Fund adopts proportionate method based on actuarial % to determine ECPI,
• Applied CGT relief on 30 June 2017.

• Run interim period update, obtain the actuarial certificate for the 2016/17 FY and update the fund policy with the new actuarial %.
• Process CGT relief event as at 30 June 2017 for all eligible assets. Capital gains are partly disregarded, and the remaining can be deferred until the assets are subsequently sold.
• Rerun the final period update.

• Run period update to 29 June 2017, commute the excess pension accounts on or before 30 June 2017.
• Run interim period update, obtain the actuarial certificate for the 2016/17 FY and update the fund policy with the new actuarial %.
• Process CGT relief event as at 30 June 2017 for all the eligible assets. Capital gains are partly disregarded, and the remaining can be deferred until the assets are subsequently sold.
• Rerun the final period update to 30 June 2017 and adjust benefit allocation if required.

• Fund changes from the proportionate method to the segregated method between 9 November 2016 and 30 June 2017.

Fund is not eligible for CGT relief

• Fund adopted segregated method on 9 November 2016 but switched to use proportionate method to determine ECPI;
• Applied the CGT relief on a cessation date between 9 November 2016 and 30 June 2017.

Note: Given triggering a cessation date before 30 June 2017 does not force members to commutate their pension accounts to be under $1.6m TBC on the same date, it is recommended to delay the pension commutation to just prior to 1 July 2017 to maximise the ECPI.

• Process CGT relief event on a cessation date for some or all the segregated current pension assets supporting the pension liabilities. Capital gains for these assets are entirely disregarded.
• Review asset pool structure, move assets from pension pool to default pool where applicable and have ‘No’ selected for to ‘Assets Segregated for Pensions’ in fund policy.
• Run interim period update, obtain the actuarial certificate for the 2016/17FY and update the fund policy with the new actuarial %.
• Rerun the final period update to 30 June 2017.

• Process CGT relief event on a cessation date for some or all the segregated current pension assets supporting the pension liabilities. Capital gains for these assets are entirely disregarded.
• Run period update to 29 June 2017, commute the excess pension accounts on 30 June 2017.
• Review asset pool structure, move assets from pension pool to default pool where applicable and have ‘No’ selected for to ‘Assets Segregated for Pensions’ in fund policy.
• Run interim period update, obtain the actuarial certificate for the 2016/17 FY and update the fund policy with the new actuarial %.
• Rerun the final period update for 30 June 2017 and adjust member benefit allocation if required.

• Fund adopted segregated method to determine ECPI until cessation time (iv) (e.g. 30 June 2017).
• Applied CGT relief on cessation date (e.g. 30 June 2017).
• Fund decided not to claim ECPI for income received for the remaining period till 30 June 2017 hence no actuarial certificate is required.

• Process CGT relief event as at 30 June 2017 for all the segregated current pension assets supporting the pension liabilities. Capital gains for these assets are entirely disregarded.
• Run the final period update to 30 June 2017.

Note: Commutation for TRIS is generally not required, hence a fund may be able to maintain 100% pension exemption without any accumulation interest.

• Process CGT relief event on a cessation date for all the segregated current pension assets that supporting the pension liabilities. Capital gains for these assets are entirely disregarded.
• For FY 2017, the fund has two fund policies (v), for example:
   1 July 2016 – 29 June 2017 (100% pension exemption)
   30 June 2017 – 30 June 2017 (0% pension exemption)
• Run period update to 29 June 2017, commute the excess pension accounts on 30 June 2017.
• Run the final period update to 30 June 2017 and adjust benefit allocation if required.

• Fund adopted segregated method as at 9 November 2016 and continues to use segregated method to determine ECPI hence actuarial certificate was not required.
• Applied the CGT relief on a cessation date between 9 November 2016 and 30 June 2017.

• This is an unlikely scenario, as it is probably in fund’s best interest to delay cessation date for a fund using segregated method to 30 June 2017 to:
   Maximise amount of ECPI the fund can claim using segregated method;
   Maximise the pension exemption actuarial % should the fund adopt the proportionate method.
• For segregated funds, it will likely produce the best outcome if the fund switches to proportionate method (just prior to 1 July 2017), so the trustees to lock in and disregard any unrealised capital gain across all segregated current pension assets at cessation time rather than selected segregated assets.
• Even if the fund inadvertently received a contribution, there are number of options to delay the cessation time. If the cession time was triggered before 30 June 2017, it is possible to delay the pension commutation to comply with $1.6m TBC to just prior to 1 July 2017 to maximise ECPI as the commutation date does not necessarily to be the same as the cessation date.
• However, if this specific scenario does surface, please search the User Guide Page for a detailed workaround: Segregated fund with CGT relief applied during the pre-commencement period (vi) and continues with segregated method.