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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Receive application and verify data
   • 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
2. Calculate amount of retirement income stream
   • 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
3. Set up new member records
   • 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
4. Meet compliance requirements
   • 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
5. Maintain member records
   • 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

Performance Evidence

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.

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Knowledge Evidence

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.

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