Application
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.
Elements and Performance Criteria
1. Process outstanding transactions | 1.1 Determine identity and authority of person making enquiry in respect of client’s income stream 1.2 Respond to enquiry relating to terminating retirement income stream by detailing proposed actions according to organisational policies and procedures 1.3 Identify the type of income stream 1.4 Determine whether the client is requesting a full or partial withdrawal or commutation from the income stream 1.5 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 1.6 Assess whether client is exercising their rights under the cooling-off period |
2. Complete and action fund documentation | 2.1 Record and communicate options to client or beneficiary and process required action according to their instructions and organisational procedures 2.2 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 2.3 Contact relevant person to obtain complying benefit payment request where payments are requested to be made to a third party 2.4 Action client request to roll over a lump sum to another superannuation fund according to organisational procedures 2.5 Establish a new reversionary income stream resulting from the termination of client’s income stream according to organisational policies and procedures 2.6 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 |
3. Determine taxable component of terminated income stream | 3.1 Determine payment of a lump sum from an income stream, complying with legislative and regulatory requirements 3.2 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 3.3 Use Australian Tax Office (ATO) guidelines to confirm dependency status and age of beneficiaries or estate recipients where a lump sum is payable 3.4 Follow organisational procedures regarding payment of a tax anti-detriment adjustment where a lump sum is payable to beneficiaries or the estate 3.5 Calculate and record relevant tax component in system according to legislative requirements and operational procedures 3.6 Prepare documentation relevant to taxation calculations and forward to required personnel for review according to organisational policies and procedures |
4. Finalise payments | 4.1 Determine entitlements within authority levels and obtain sign-off 4.2 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 4.3 File copies of documents correctly and in a timely manner 4.4 Respond to further client enquiries and refer complex enquiries to required personnel 4.5 Implement system and process checks according to organisational policies and procedures, and correct irregularities 4.6 Communicate irregularities to required personnel according to organisational policies and procedures |
Evidence of Performance
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.
Evidence of Knowledge
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.
Assessment Conditions
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.
Foundation Skills
Numeracy | Uses mathematical operations to perform calculations and check accuracy of financial information relating to work activities |
Oral communication | Uses appropriate conventions and protocols, including language and concepts appropriate to audience and purpose, to convey and clarify information in a range of contexts Uses questioning and active listening in verbal exchanges to determine and confirm requirements |
Reading | Interprets written and numerical information from a range of sources and identifies required information to complete work activities |
Writing | Records and completes organisational documentation and correspondence using correct terminology, grammar and spelling to ensure clarity and readability Prepares and structures documentation logically and concisely according to organisational formats and correct procedures and protocols |
Planning and organising | Plans, sequences and prioritises tasks to achieve organisational requirements Uses formal decision-making processes and guidelines to resolve routine and non-routine issues and irregularities |
Self-management | Follows organisational policies and procedures and legislative and ethical requirements and meets expectations associated with own role |
Technology | Uses the main features and functions of digital tools and systems to access and manage information |
Sectors
Superannuation