This unit may be applied within the context of a financial counselling role or in educational programs facilitated by financial counsellors or financial institutions within the context of improving consumer financial literacy.

ELEMENT

PERFORMANCE CRITERIA

1. Explore the contemporary superannuation environment in Australia

1.1. The purposes and benefits of superannuation as part of a long-term investment strategy to support people in retirement are identified and analysed

1.2. The characteristics of superannuation in Australia following the introduction of Superannuation Guarantee contributions by employers are canvassed and assessed for their impact on individual and community savings patterns

1.3. The role of regulators and trustees in the regulation and management of superannuation funds in the Australian superannuation industry is identified and explored

1.4. Key terminology used within the superannuation industry is explained and clarified

1.5. Sources for ongoing information about superannuation in Australia are identified and their uses explored

2. Analyse the range of investment vehicles used in superannuation funds

2.1. The nature and role of superannuation schemes and the range and types of superannuation fund managers are identified

2.2. A range of investment objectives and their related strategies are explained and analysed

2.3. The role of death benefits within superannuation schemes is identified

2.4. The costs of administering and managing superannuation funds are explained and analysed

2.5. A cross-section of superannuation funds' performance over time is analysed and compared, and the variables that contributed to performance are explained and analysed

3. Foster the active management of superannuation funds

3.1. The importance and means of checking superannuation statements for accuracy are explained and demonstrated to the customer

3.2. Techniques for analysing the performance, rate of return, government taxes and other costs are demonstrated and analysed

3.3. Strategies for building superannuation savings including personal contributions and salary sacrificing are described and analysed

3.4. The importance of retaining superannuation statements for future analysis is explained to the customer

3.5. Mechanisms to gain information, clarification or to lodge complaints if concerns or discrepancies arise about an individual's superannuation fund are explained and explored

4. Foster understanding of the structures and strategies to deploy superannuation savings

4.1. The processes and requirements for the management and deployment of funds when employment status or employer are changed are explained and explored

4.2. The role and nature of preserved and non-preserved components of superannuation funds are explained and explored

4.3. The government regulated minimum age when superannuation benefits can be accessed, and the regulation's impact, are defined and explained to the customer

4.4. The nature of accumulation or defined benefit funds are defined and explained to the customer

4.5. The range of structures and techniques for the utilisation of superannuation funds on retirement are explained and explored

Required skills

communication skills to:

clearly explain superannuation purposes, functions and schemes to customers or employees, using questioning and active listening as required and respondingwith empathy in sensitive cases

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

IT skills to use internet information and use calculators and spreadsheets to calculate superannuation costs and returns

literacy skills for:

analysing information to ensure appropriateness to customer or employee needs, currency and accuracy

drafting documents for customers or employees

problem solving skills to identify any issues that have the potential to impact on the customer or employee's understanding and develop options

organisational skills, including the ability to plan and sequence work

Required knowledge

relevant government legislation relating to superannuation

relevant industry codes of practice including:

Consumer Credit Code

Privacy Act

Credit Act

roles and relationships between participants within the Australian financial services industry, including banks and other financial intermediaries

sound knowledge of consumer issues relating to superannuation information

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 terminology used within the superannuation industry to a range of customers or employees

provide clear and relevant information to customers and/or those in or about to enter the workforce that will build understanding and confidence in the effective management of personal superannuation

identify and present to customers or employees, methods of managing their superannuation contributions and funds.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services 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 financial services superannuation product information.

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 or role plays

verbal or written questioning on underpinning knowledge and skills

setting and reviewing workplace projects and business simulations or scenarios.

Guidance information for assessment

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.

Range of characteristics of superannuation in Australia include:

ages at which people may access their superannuation savings

available tax concessions for self-employed people who take out superannuation

regulated contributions as a percentage of earnings paid by employers as the Superannuation Guarantee

tax arrangements for superannuation schemes.

The regulators within the superannuation industry are:

Australian Prudential Regulation Authority (APRA)

Australian Securities and Investments Commission (ASIC)

Australian Taxation Office (ATO).

Superannuation schemes include:

accumulation funds

defined benefit funds.

The types of superannuation fund managers include:

employer or corporate funds

industry funds

retail funds

self-managed funds.

Strategies include:

balanced

capital guaranteed

capital stable

growth.

The costs of administering and managing superannuation funds include:

additional contributions costs

adviser service fees

commissions

deposit fees

early termination fees

entry costs

exist costs

fund management fees (usually a percentage of funds under management)

insurance premiums

switching fees

trustee levy.

Common items that will be found when checking superannuation Statements may include:

general details including:

confirmation tax file number received

date the member joined the fund

fund name

member name and date of birth

summary of account details including:

closing balance

deductions including fees and withdrawals by the member

investment earnings

list of contributions

opening balance

rebates

benefit details.

Changes to employment status or employer may result from:

changing jobs

redundancy

retirement

retrenchment.

Unit sector

Financial literacy

This unit contains employability skills.