This page shows you how to process pension commutations in bulk. This allows you to commute multiple pensions at once and create a single set of documents. This feature has been designed to help you with new super reforms when commuting members with pension balances over $1.6 million.

This functionality only applies to account based pensions, including TRIS.

Any pension commutation that will generate a PAYG component will need to be processed via the single Pension Commutation event.

1. Run a period update

A period update needs to be run to the day before the commutation so you have an accurate member balance when calculating the commutation. Please note that period update is not required if the pension commutation happens on 1 July.

The Pension Commutation event will post a transfer out from the member's pension account into their accumulation account. When commuting the member's entire pension balance, it is recommended to maintain this period update to ensure no residual balance remains in the pension account. For details on how to run a period update please see Running a Period Update.

2. Adjust pension period review

The existing pension review needs to be updated prior to processing the commutation. The purpose of this is to ensure that the payment made falls within the minimum-maximum payment requirements.

3. Process a Pension Commutation event

Navigate to Fund level Members > Bulk pension commutation

1. Select the relevant member from the drop-down list
2. Enter the commutation date
3. Select the type from the drop-down; Payment to Accumulation or Cash Lump Sum
4. Select the reason for commutation from the drop-down; 
5. Enter a description (Defaults to Bulk Pension Commutation)
6. Option to manually enter and allocate the amount to be commuted per pension
7. Option to manually enter the total amount that will be commuted. Class will then automatically allocate this amount across all pensions using the option selected under 'Allocation Order' below.
8. Select from the drop-down the order in which the pension commutation will be based; Low to high tax-free % (based on the tax-free % column on this event), High to low tax-free% (based on the tax-free % column on this event), Oldest to newest (based on the start date column on this event) and Newest to oldest (based on the start date column on this event)
9. Click Calculate to use the Allocation Method
10. Click Submit
    
    
    

Print Commutation Reports

Once the Bulk Commutation event has been processed, you can print the reports by selecting Print Commutation Reports