Member has received a Permanent Incapacity Lump Sum Payment, how do I process it in Class?
If a person receives a lump sum payment in his/her accumulation account, due to the person is being permanently incapacitated, the type of superannuation withdrawal is referred to as disability superannuation benefit.
The tax-free component of the benefit will be increased for the future service benefit, broadly reflecting the period where the person would have been expected to have been gainfully employed.
You are required to work out and adjust the modified tax-free component for the lump sum payment in Class manually.
To resolve this issue you will need to:
Step 1: Add a Member Transition
Step 2: Process the Lump Sum payment
Add a Member Transition
Navigate to Fund Level > Members > Browse Members
- Click on Member's name
- From the pop-up screen, click on Member Transition
- Enter the date when member confirmed as Permanent Incapacity nomination
- Select "Permanent Incapacity nomination" from the drop-down list
Process the Lump Sum payment
Navigate to Fund Level > Periodic Processing > Period update
- Select the relevant financial year
- Run a period update to one day before the date of lump sum payment
Navigate to Fund Level > Members > Adjust Member Account Components
- Adjust the amount from the benefit payment and the entitled tax-free amount. The taxable component will be reduced accordingly.
Navigate to Fund Level > Transactions > Member payment > Rollover/Lump Sum Out
To increase the member's tax-free component by the difference between the existing tax-free and the modified tax-free component:
- Select "Permanent Incapacity" as the condition of release
You may repeat this process for each lump sum payment that relates to this benefit.