This unit applies to job roles administering retirement income streams in organisations managing superannuation fund or life assurance or in other financial institutions.

ELEMENT

PERFORMANCE CRITERIA

1. Explain the features and processes of retirement income streams

1.1. The main types of income streams are identified

1.2. The features, advantages and disadvantages of the main retirement income streams are identified

1.3. The taxation, payment and social security requirements and considerations of income streams are identified

1.4. Regulations and legislation determining compliance of retirement income streams are identified and complied with

2. Process Eligible Termination Payment (ETP) rollover payments for the purchase of retirement income streams

2.1. New accounts are established and checked for eligibility

2.2. Payments are received via post, person, phone or electronic transfer

2.3. Payments and organisation documents are checked to ensure information is complete and correct

2.4. Further information is obtained as required

2.5. Data is entered and policy activated according to organisation procedures

2.6. Payments are prepared and banked according to organisation procedures

2.7. Policy documents and confirmation are sent to member

2.8. Documentation is filed according to organisation procedures

3. Process retirement income benefits

3.1. Payment is prepared and processed according to conditions of member contract and organisation guidelines

3.2. Benefit is calculated to include additional fees, taxation, surcharge debt and/or other factors

3.3. Documentation is prepared and checked according to organisation guidelines

3.4. Payment is checked for delivery to member

4. Process and maintain documentation and records

4.1. All transactions are correctly documented in member records

4.2. Statements and receipts are prepared and issued to members according to organisation guidelines

4.3. Member records are maintained to ensure currency and accuracy

4.4. Pension payments are maintained and regularly reviewed

4.5. The annual review processes are identified and implemented

4.6. Certificates, benefit information and taxation information are generated and provided according to legislative requirements

5. Process commutations

5.1. Requests for withdrawals are received and documented according to organisation procedures

5.2. Information provided is checked for accuracy and completion

5.3. Withdrawal requests are processed according to organisation procedures

5.4. Records are updated

6. Respond to member enquiries regarding retirement income as required

6.1. Member enquiries are treated professionally and in accordance with organisation customer service standards

6.2. Required information is provided to meet general member enquiries

6.3. Complex enquiries are referred to appropriate personnel

6.4. Information is provided according to organisation and legislative requirements

7. Follow quality assurance procedures

7.1. Organisation procedures are followed

7.2. Member details are established and maintained in accordance with organisation requirements

7.3. System and process checks are implemented and any irregularities identified

7.4. Any irregularities are corrected or communicated to appropriate personnel

Required skills

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

numeracy and IT skills to:

perform calculations related to income streams

access and update account records electronically

use internet information

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

data analysis and interpretation skills

interpersonal skills to relate effectively within a team environment

organisation skills, including the ability to plan and sequence work

Required knowledge

organisation policies, procedures, objectives and guidelines

compliance requirements for routine tasks

effect of privacy legislation on work role

fraud deterrence practices

relevant acts and regulations and legislative and code of practice requirements

historical development of Australia's retirement income system

features, advantages and disadvantages of retirement income stream options

taxation implications of retirement income stream options

the impact of legislation on retirement income stream options

the role of employers and members in retirement income stream options

formulas used to calculate defined benefits

how commutation of pensions works

issues concerning contributions surcharge and benefit payouts

effect of death and disability on retirement income stream options

process and implications of transfer between superannuation funds

process and implications of changing fund structures

Privacy Act obligations

fraud deterrence practices

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:

apply knowledge of retirement income stream features and processes and process ETP rollover payments according to organisation requirements

access member contract guidelines and prepare income benefit documentation

process commutations and explain to clients how pensions and annuities are taxed

accurately process incoming payments and outgoing benefits

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

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.

Main types of income streams include:

complying and non-complying pensions and annuities:

lifetime pensions/annuities

fixed term pensions/annuities

allocated pensions/annuities.

Regulation and legislation determining compliance may include:

Superannuation Industry (Supervision) (SIS) Act

Superannuation Industry (Supervision) Regulations

Financial Services Reform Act (FSRA)

Corporations Act

Income Tax Assessment Act

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

Superannuation (Resolution of Complaints) Act

Superannuation (Unclaimed Moneys and Lost Members) Act Family Law Legislation Amendment Superannuation Act

Insurance Act

Privacy Act

anti-discrimination legislation

Trustee Acts or Trust Acts in each State and Territory

industrial legislation

stamp duty legislation

trade practices legislation.

Organisation procedures may include:

best practice standards

codes of practice

documentation and filing procedures

internal and external communications

regulatory requirements

system/computer procedures.

Member enquiries may include:

balance of account

change of personal details

date of payment

product rules and options

schedules.

Unit sector

Superannuation

This unit contains employability skills.