Assessor Resource

FNSSUP420
Establish and administer retirement income streams

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to set up and manage retirement income streams in compliance with current legislation and regulations.

The unit applies to those who use specialised industry knowledge and work systematically to review and process information and data according to defined procedures.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those requirements.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)


Evidence Required

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.

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

establish and administer retirement income streams for at least three different clients.

In the course if the above, the candidate must:

access member contract guidelines and prepare income benefit documentation

calculate tax payable on an income stream paid to a client, taking into account client’s age

process documentation and commutations, including taxation payable

comply with legislative and regulatory requirements and organisational policies and procedures when determining compliance of retirement income streams.

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

legislative and regulatory requirements relating to:

establishing retirement income streams

key features of Australian privacy principles

data protection

organisational policies, procedures and guidelines relating to establishing and administering retirement income streams, including the steps in:

setting up an income stream and the documents required, including the verification process

maintaining an income stream and the documents required, including proof of life for non-account based income streams

types of income streams earned by clients, including:

those included in pay as you go (PAYG) documentation

reversionary pensions

retirement income stream products of the organisation

ethical considerations in handling confidential and private client information

ways and processes by which a person can purchase a retirement pension or annuity

retirement pension or annuity options available to clients, including hybrid fund options

position and implications for beneficiaries in establishing a retirement income stream, including:

relevance to reversionary pensions

account-based income streams

death benefit nominations

estate planning

key features and benefits of retirement income stream products

documentation required to establish retirement income streams, including certified copies of appropriate identification

requirements for accessing an income stream

methods used to perform calculations relating to retirement income streams

consequences of incorrect processing of income stream payments, incorrect maintenance of the income stream, and of other breaches

key features of policy documents for investment clients, including:

confirmations

investor certificates

details regarding cooling off periods.

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

organisational equipment, technology, software and consumables

financial services product information

client documentation required to establish and administer retirement income streams, including PAYG summary documentation with income stream details

publicly available information required to establish and administer retirement income streams, including the latest consumer price index (CPI) information available

organisational policies and procedures relevant to establishing and administering retirement income streams.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

establish and administer retirement income streams for at least three different clients.

In the course if the above, the candidate must:

access member contract guidelines and prepare income benefit documentation

calculate tax payable on an income stream paid to a client, taking into account client’s age

process documentation and commutations, including taxation payable

comply with legislative and regulatory requirements and organisational policies and procedures when determining compliance of retirement income streams.

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

legislative and regulatory requirements relating to:

establishing retirement income streams

key features of Australian privacy principles

data protection

organisational policies, procedures and guidelines relating to establishing and administering retirement income streams, including the steps in:

setting up an income stream and the documents required, including the verification process

maintaining an income stream and the documents required, including proof of life for non-account based income streams

types of income streams earned by clients, including:

those included in pay as you go (PAYG) documentation

reversionary pensions

retirement income stream products of the organisation

ethical considerations in handling confidential and private client information

ways and processes by which a person can purchase a retirement pension or annuity

retirement pension or annuity options available to clients, including hybrid fund options

position and implications for beneficiaries in establishing a retirement income stream, including:

relevance to reversionary pensions

account-based income streams

death benefit nominations

estate planning

key features and benefits of retirement income stream products

documentation required to establish retirement income streams, including certified copies of appropriate identification

requirements for accessing an income stream

methods used to perform calculations relating to retirement income streams

consequences of incorrect processing of income stream payments, incorrect maintenance of the income stream, and of other breaches

key features of policy documents for investment clients, including:

confirmations

investor certificates

details regarding cooling off periods.

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

organisational equipment, technology, software and consumables

financial services product information

client documentation required to establish and administer retirement income streams, including PAYG summary documentation with income stream details

publicly available information required to establish and administer retirement income streams, including the latest consumer price index (CPI) information available

organisational policies and procedures relevant to establishing and administering retirement income streams.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Receive new income stream application and payment where required, and compile required documentation 
Check that documentation is correct and complete 
Identify and address issues or irregularities and seek advice from team members or authorised personnel as required 
Gather further information from appropriate sources to proceed with application if required 
Update new and additional information according to organisational policies and procedures 
Calculate amount of a non-account based income stream according to minimum and maximum annual limits 
Confirm payment selected by the member in an account-based income stream is within age-related limits 
Calculate payment for transition to retirement account-based income stream, according to minimum and maximum annual limits 
Administer incoming payments and outgoing benefits using required portals and systems 
Extract information required to set up income stream from application form and information collected, including setting up pay as you go (PAYG) instalments 
Enter data into organisational system and follow checking and authorisation procedures for setting up new income streams including reversionary pensions 
Process client’s nominated investment choice for an account-based income stream according to organisational policies and procedures 
Send confirmation, policy documents or investor certificate and details of cooling off period to client according to organisational policies and procedures 
File documentation according to organisational policies and procedures 
Send to client periodic statement and PAYG summary with income stream details 
Provide to clients and relevant government departments information relating to income stream products, within legislative and regulatory limits 
Conduct system checks according to organisational policies and procedures and check for any irregularities of payments 
Identify and rectify consequences of incorrect payments 
Determine compliance of retirement income streams according to legislative and regulatory requirements 
Process requests for changes to client’s nominated investment choice according to organisational guidelines 
Apply earning rates and consumer price index (CPI) adjustments to retirement income stream 
Determine, on an annual basis, that nominated account-based income stream payments are within the relevant age range set out by legislation, and make adjustments where required 
Update client’s personal details and allowable changes to nominated beneficiaries as required 

Forms

Assessment Cover Sheet

FNSSUP420 - Establish and administer retirement income streams
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSSUP420 - Establish and administer retirement income streams

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: