Assessor Resource

FNSSUP431
Terminate retirement income streams

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to terminate retirement income stream benefit payments, process commutation claims or permit partial withdrawals and determine taxable component of terminated income stream for clients. In the case of a client’s death, the described activities will be performed for the beneficiary of the retirement income stream.

The unit applies to those who use specialised industry knowledge and systematic approaches to thoroughly and accurately complete a range of tasks that meet organisational quality assurance procedures.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

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:

terminate or commute retirement income streams for at least one client.

In the court of the above, the candidate must:

use Australian Tax Office (ATO) guidelines to confirm dependency status and age of beneficiaries or estate recipients where a lump sum is payable

rectify errors and irregularities and communicate to required personnel

calculate income stream payout, including full and partial withdrawals or commutations

implement system and process checks and identify any irregularities.

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 requirements, regulations and contractual terms governing termination of retirement income streams in the event of death

organisational policies and procedures relating to termination of retirement income stream products, including steps in:

terminating or ceasing income streams and annuities

partial withdrawal and partial commutation of pensions

communicating with client, beneficiaries and client’s legal representative

organisational quality assurance

definitions of dependant, including definitions according to superannuation and taxation laws, including those of Superannuation Industry (Supervision) [SIS] Act and ATO

ethical and legal considerations in handling confidential and private client information

process and issues relevant to the nomination of beneficiaries

personnel entitled to make enquiries about a client’s superannuation and dealing with related enquiries

procedures for processing and calculating death benefits

timing rules and procedures for calculating commutations of non-account based income

claim staking process for death benefits

anti-detriment tax adjustments for lump sum benefits paid to dependants

overview of taxation implications on retirement income stream or annuity products

access and preservation rules

rules, processes and circumstances relevant to:

rolling back a pension

rolling over and refreshing a pension

reversionary pensions.

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

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.

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:

terminate or commute retirement income streams for at least one client.

In the court of the above, the candidate must:

use Australian Tax Office (ATO) guidelines to confirm dependency status and age of beneficiaries or estate recipients where a lump sum is payable

rectify errors and irregularities and communicate to required personnel

calculate income stream payout, including full and partial withdrawals or commutations

implement system and process checks and identify any irregularities.

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 requirements, regulations and contractual terms governing termination of retirement income streams in the event of death

organisational policies and procedures relating to termination of retirement income stream products, including steps in:

terminating or ceasing income streams and annuities

partial withdrawal and partial commutation of pensions

communicating with client, beneficiaries and client’s legal representative

organisational quality assurance

definitions of dependant, including definitions according to superannuation and taxation laws, including those of Superannuation Industry (Supervision) [SIS] Act and ATO

ethical and legal considerations in handling confidential and private client information

process and issues relevant to the nomination of beneficiaries

personnel entitled to make enquiries about a client’s superannuation and dealing with related enquiries

procedures for processing and calculating death benefits

timing rules and procedures for calculating commutations of non-account based income

claim staking process for death benefits

anti-detriment tax adjustments for lump sum benefits paid to dependants

overview of taxation implications on retirement income stream or annuity products

access and preservation rules

rules, processes and circumstances relevant to:

rolling back a pension

rolling over and refreshing a pension

reversionary pensions.

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

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.
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
Determine identity and authority of person making enquiry in respect of client’s income stream 
Respond to enquiry relating to terminating retirement income stream by detailing proposed actions according to organisational policies and procedures 
Identify the type of income stream 
Determine whether the client is requesting a full or partial withdrawal or commutation from the income stream 
Determine whether income stream can be commuted, terminated or whether it permits partial withdrawals and whether a reversionary pension or payment to the client’s estate is available in the case of client’s death 
Assess whether client is exercising their rights under the cooling-off period 
Record and communicate options to client or beneficiary and process required action according to their instructions and organisational procedures 
Process reversionary pension and other payments to the client’s estate in the event of client’s death, confirm relevant documentation has been received, and initiate claim staking processes where required 
Contact relevant person to obtain complying benefit payment request where payments are requested to be made to a third party 
Action client request to roll over a lump sum to another superannuation fund according to organisational procedures 
Establish a new reversionary income stream resulting from the termination of client’s income stream according to organisational policies and procedures 
Follow organisational procedures where a partial withdrawal by client from an account-based pension results in a breach of minimum and maximum range for income stream 
Determine payment of a lump sum from an income stream, complying with legislative and regulatory requirements 
Establish client’s age to determine whether tax is payable where the lump sum is a full or part withdrawal or commutation is paid to the client 
Use Australian Tax Office (ATO) guidelines to confirm dependency status and age of beneficiaries or estate recipients where a lump sum is payable 
Follow organisational procedures regarding payment of a tax anti-detriment adjustment where a lump sum is payable to beneficiaries or the estate 
Calculate and record relevant tax component in system according to legislative requirements and operational procedures 
Prepare documentation relevant to taxation calculations and forward to required personnel for review according to organisational policies and procedures 
Determine entitlements within authority levels and obtain sign-off 
Communicate outcome and nominated rollover fund details to client, beneficiary or client’s legal representative and send required information to client, their nominated rollover fund, beneficiary or legal representative, according to legislative and organisational requirements 
File copies of documents correctly and in a timely manner 
Respond to further client enquiries and refer complex enquiries to required personnel 
Implement system and process checks according to organisational policies and procedures, and correct irregularities 
Communicate irregularities to required personnel according to organisational policies and procedures 

Forms

Assessment Cover Sheet

FNSSUP431 - Terminate 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

FNSSUP431 - Terminate 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: