Issue

The member failed to meet the minimum pension requirement for the financial year. How can this be processed in Class?

Resolution

The following steps can be used for Pensions which fail to meet the Minimum Payment.

Navigate to Fund Level > Periodic Processing > Period Updates

1. Run a Period Update as at 30 June after processing the Financials as normal.
2. Note down the closing balance for the Pension Account that failed to meet the minimum

Navigate to Fund Level > Periodic Processing > TBAR Console

1. Process Manual TBAR event (without ticking Adjustment Box) with Event Type "Income Stream stops being in retirement phase". Event date should be 30 June and the amount is the closing balance of the pension account that you noted down from the step above.
2. Generate the TBAR at the Business level and lodge on the ATO portal.

Navigate to Fund Level > Periodic Processing > Period Updates

1. Rollback the Period Update
2. Delete all Pension Drawdown events under the Pension Account which was processed to calculate 30 June balance in Step 1

Navigate to Fund Level > Members > Pension Commutation

1. Commute the Pension Account that failed to meet the minimum as at the beginning of the financial year, eg. 1 July via Members > Pension Commutation with:
   • • Payment Type: "Payment to Accumulation"
     • Reason for Commutation: "Income Stream stops being in retirement phase"
     • This transaction will not generate a TBAR event

Navigate to Fund Level > Transactions > Member Payments > Rollover/Lump Sum Out

1. Process as a Rollover/Lump Sum (Cash Lump Sum) any amount withdrawn that was supposed to be a Pension Drawdown.