List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Process transactions | 1.1 Receive and respond to client enquiries for access to a lump sum from an income stream, including notification of the client’s death, and document according to organisational procedures 1.2 Assess the circumstance and type of income stream to determine if it can be commuted, terminated or permits partial withdrawals or, in the case of the death of the client, if a reversionary pension or payment to the client’s estate is available 1.3 Assess whether a client is exercising their rights under the cooling off period 1.4 Determine whether the client is requesting a full or partial withdrawal or commutation from the income stream |
2. Complete and action fund documentation | 2.1 Record information and send additional information to the client or approved representative to process required action in accordance with organisational procedures 2.2 Process reversionary pension and/or other payments to the client’s estate, in the event of the client’s death, on receipt of appropriate documentation and apply claim staking processes where required 2.3 Contact the relevant person to obtain complying benefit payment request where payments are requested to be made to a third party 2.4 Action client request to roll over a lump sum to another superannuation fund in accordance with organisational procedures 2.5 Establish a new reversionary income stream resulting from the termination of a client’s income stream in accordance with organisational procedures 2.6 Follow organisational procedures where a partial withdrawal from an account based pension by the client results in a breach of the minimum and maximum range for the income stream |
3. Determine taxable component of terminated income stream | 3.1 Establish the client’s age to determine whether tax is payable where the lump sum is a full or part withdrawal or commutation paid to the client 3.2 Use Australian Tax Office (ATO) guidelines to confirm dependency status and age of beneficiaries or estate recipients where a lump sum is payable 3.3 Follow organisational procedures regarding payment of a tax anti-detriment adjustment where a lump sum is payable to beneficiaries or the estate 3.4 Calculate appropriate tax component according to legislative requirements and record in appropriate system in line with organisational procedures 3.5 Prepare documents and forward to appropriate personnel for checking in line with organisational procedures |
4. Forward information and payments to appropriate parties | 4.1 Determine entitlements within authority levels and obtain sign off 4.2 Send information, depending on payment type, to the client, their nominated rollover fund, beneficiary or client’s legal representative according to organisational and legislative requirements 4.3 Communicate with clients, beneficiaries and client’s legal representative according to organisational procedures 4.4 File copies of documents correctly and in a timely manner |
5. Respond to enquiries from clients and other persons entitled to make an enquiry | 5.1 Determine identity and authority of person making enquiry in respect of a client’s income stream 5.2 Treat enquiries from clients and other parties professionally and provide required information according to organisational and legislative requirements 5.3 Refer complex enquiries to appropriate personnel |
6. Follow quality assurance procedures | 6.1 Follow organisational procedures to ensure all work is completed accurately 6.2 Comply with regulations and legislation determining payment of a lump sum from an income stream 6.3 Implement system and process checks and identify any irregularities 6.4 Correct any irregularities or communicate to appropriate personnel |
Evidence of the ability to:
follow organisational procedures to terminate or commute retirement income streams for clients including:
processing and preparing all documentation accurately
calculating income stream payouts including full and partial withdrawals or commutations
calculating tax on lump sums
communicate efficiently and effectively with clients, beneficiaries, team members and other relevant parties.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
explain who is entitled to make enquiries about a client’s superannuation and how to deal with those enquiries
outline key features of organisational policies and procedures in relation to the termination of income stream products including the steps in:
terminating or ceasing income streams and annuities
partial withdrawal and partial commutation of pensions
communications with client, beneficiaries and client’s legal representative
explain key features of regulatory requirements relevant to the termination of retirement income streams
discuss ethical and legal considerations in handling confidential and private client information
outline the process and issues relevant to the nomination of beneficiaries
explain how death benefits are processed and calculated
describe timing rules and how commutations of non-account based income streams are calculated
describe the claim staking process for death benefits
describe the different definitions of dependant including Superannuation Industry (Supervision) (SIS) Act and Australian Tax Office (ATO) definitions
explain anti-detriment tax adjustments for lump sum benefits paid to dependants
provide an overview of taxation implications on retirement income stream or annuity products
describe access and preservation rules
describe applicable situations, rules and processes involved in:
rolling back a pension
rolling over and refreshing a pension
reversionary pensions.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the superannuation field of work and include access to:
office equipment, technology, software and consumables
organisational policies and procedures including requirements relevant to terminating retirement income streams.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.