Assessor Resource

FNSSUP509A
Work within a defined benefit fund

Assessment tool

Version 1.0
Issue Date: May 2024


This unit applies to various job roles within a defined benefit fund.

This unit describes the performance outcomes, skills and knowledge required to explain the design features of a defined benefit fund, identify legislation and regulation relevant to a defined benefit fund, process contributions to defined benefit fund, maintain documentation and records according to defined benefit fund requirements and implement quality assurance procedures.

This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investment Commission (ASIC).

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

Employability Skills

This unit contains employability skills.



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 Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

explain the design of defined benefit funds to members

process contributions and payment of benefits in a defined benefit fund, including additional fees, charges and taxes

source, interpret and test integrity of information required to process benefits

interpret trust deed conditions and establish special circumstances and make informed recommendations about benefit payments

identify, source and interpret required information to process benefits for lump sum payments, death claims and disablement claims

assess and determine benefit entitlements for eligible termination payments (ETP), death and disablement claims using computer programs

accurately process contributions and benefits and insurance claims according to organisation guidelines and relevant legislation

correctly identify consequences of incorrect processing of contributions and benefits.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to organisation financial records

access to organisation policies and procedures.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency

observing processes and procedures in workplaces

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports

setting and reviewing workplace business simulations or scenarios.

Guidance information for assessment

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.

Required skills

highly-developed communication skills to:

liaise with others, share information, confirm work requirements, using questioning and active listening as required

use language and concepts appropriate to cultural differences

prepare fund documentation and reports

well-developed numeracy and IT skills to:

perform basic calculations related to fund payments

calculate Notional Surchargeable Contribution Factor (NSCF)

access and update account records electronically

monitor for and advise on irregularities within a fund

access and use appropriate software such as word processors, spreadsheets and databases

use internet information

well-developed literacy skills to read and interpret documentation from a variety of sources and record and consolidate related information

data analysis and interpretation skills to interpret trust deeds and analyse, interpret and report results from actuarial investigations

interpersonal skills to relate effectively within a team environment

organisation skills, including the ability to plan and sequence work

learning skills to maintain knowledge of changes to products and relevant legislation

judgement skills for forming recommendations in operational situations

management skills for working effectively in a constantly changing environment

Required knowledge

advantages and disadvantages of different methods of contributing to defined benefit funds

effect and use of actuarial tools (compound interest and probability)

effect of part-time and casual employees and leave on defined benefits

effect of resignation, dismissal and redundancy on defined benefits

application of privacy legislation

different types of retirement benefits and eligibility

effect of death and disability on defined benefits

factors affecting retirement benefit design

features, advantages and disadvantages of accumulation and defined benefit funds

formulas used to calculate defined benefits

fraud deterrence practices

historical development of Australia's retirement income system

how commutation of pensions work

implications and procedure for actuarial investigations

influences affecting the choice of design of funds and benefits

issues associated with pensions and lump sums

issues concerning contributions surcharge and benefit payouts

legal requirements for actuarial investigations of defined benefit funds

process and implications of:

changing fund structures

transfer between superannuation funds

calculating the value of future liabilities, the valuation of assets and the establishment of the contribution rate

relevant legislation

role of actuaries in determining payment of benefits

special provisions relating to public sector defined benefit funds

taxation implications of defined benefit funds

calculation of Notional Surchargeable Contribution Factor (NSCF)on Defined Benefit Funds

the role of employers and members in contributions made to defined benefit funds

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Influences on fund and benefit design may include:

contributory verses non-contributory

employee relations

employer cost

job mobility

market competition

member investment choice

retirement patterns

salary definitions

use of salary for calculation of benefits

variable contributions.

Funding options may include:

contributions based on liability

equal contributions per employee

Pay As You Go (PAYG)

single lump sum.

Legislation and regulations determining compliance may include, as amended:

anti-discrimination legislation

Corporations Act

Family Law Legislation Amendment Superannuation Act

Financial Services Reform Act (FSRA)

Income Tax Assessment Act

industrial legislation

Insurance Act

Privacy Act

Retirement Savings Account Act

stamp duty legislation

Superannuation (Resolution of Complaints) Act

Superannuation (Unclaimed Moneys and Lost Members) Act

Superannuation Contributions Tax (Assessment and Collection) Act (surcharge)

Superannuation Guarantee (Administration) Act (SGAA)

Superannuation Industry (Supervision) (SIS) Act

Superannuation Industry (Supervision) Regulations

Trade Practices legislation

Trustee Acts or Trust Acts in each State and Territory.

Beneficiaries may include:

beneficiaries as identified by State and Territory legislation

children who are minors

current or ex-spouse

custodial children

financial dependants

legal personal representative

non-custodial children.

Organisation procedures may include:

best practice standards

codes of practice

documentation and filing procedures

internal communications

regulatory requirements

system/computer procedures.

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
The features, advantages and disadvantages of defined benefit funds are identified 
Eligibility conditions affecting defined benefit funds are identified 
Issues associated with pensions and lump sums are identified where relevant 
Influences on fund and benefit design are identified 
Funding options for defined benefit funds are identified 
Requirements of legislation and regulations specific to defined benefit funds are identified and incorporated into activities 
Rules guiding compulsory payments into defined benefit funds are identified and followed 
Contributions are received and processed according to fund requirements 
Options for benefit payment in defined benefit funds are investigated 
Benefit is calculated to include additional fees, charges, taxes and other factors 
Benefits and pensions are processed according to fund requirements 
Beneficiaries are communicated with according to organisation guidelines 
All transactions are correctly documented in member records 
Statements and receipts are prepared and issued to members according to organisation guidelines 
Member records are maintained to ensure currency and accuracy 
Certificates, benefit information and taxation information are generated and provided according to legislative requirements 
Fund information is generated and provided to the actuary for the preparation of necessary certificates 
Organisation procedures are followed 
Member details are established and maintained in accordance with organisation requirements 
System and process checks are implemented and any irregularities identified 
Any irregularities are corrected or communicated to appropriate personnel 

Forms

Assessment Cover Sheet

FNSSUP509A - Work within a defined benefit fund
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

FNSSUP509A - Work within a defined benefit fund

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: