Application
This unit describes the skills and knowledge required to determine the implications of possible social security entitlements in calculating an individual’s retirement income stream. It does not include the provision of personal financial advice to an individual.
The unit applies to those who use specialised industry knowledge and systematic approaches to analyse numerical information, process financial information and maintain quality standards.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
1. Research eligibility requirements for accessing social security entitlements | 1.1 Identify and analyse sources of current information on social security entitlements and their impact on income in retirement 1.2 Analyse requirements of individual’s government aged pension entitlement 1.3 Determine impacts of social security entitlements on the income of an individual in or nearing retirement 1.4 Determine eligibility requirements for relevant social security entitlements and allowances that apply to individuals 1.5 Obtain confirmation of eligibility with Centrelink from individual according to organisational policies and procedures |
2. Apply means testing rules | 2.1 Identify the treatment of income streams according to the means testing process prescribed by the government and the different treatments of account based and non-account based income streams 2.2 Apply means testing arrangements to work activities 2.3 Identify aged pension threshold rates at which government pensions reduce for the individual 2.4 Use income and assets test information to calculate annual income stream amount to be assessed for social security purposes |
3. Determine deemed income on retirement entitlements | 3.1 Identify calculation for deemed income 3.2 Provide details on financial investments included and excluded in deemed income and the asset test calculation 3.3 Identify deeming rates for individual 3.4 Seek advice and clarification from required personnel |
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:
determine impact of social security entitlements on the retirement income of at least three different people.
In the course of the above, the candidate must:
research current information on social security rules and eligibility requirements and apply to determine impact on retirement income streams
apply mathematical techniques to:
calculate retirement income taking into consideration the impact of possible social security entitlements
correct rules and rates to calculate deemed income on retirement entitlements.
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 relating to client privacy and data confidentiality
organisational policies and procedures relating to determining impact of social security entitlements
organisational quality assurance
social security entitlements available for those retired or nearing retirement
key components of the Australian social security system and government retirement income policy
government social security entitlements and allowances, including payments for:
veterans
carers
people with disabilities
current means testing frameworks relevant to determining the impact of social security entitlements on retirement income
methods for calculating an individual’s age pension entitlement, including how the Australian social security system takes superannuation assets into account
treatment of income streams in means testing, including:
pensions
annuities
methods used to check for computational errors in financial calculations.
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.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
Numeracy | Interprets financial information and analyses against guidelines and rules Uses mathematical operations to perform complex calculations using multiple forms of financial data |
Oral communication | Uses clear, specific language and correct terminology to convey information and achieve required outcomes |
Reading | Gathers, analyses and interprets simple to complex information from a range of sources |
Writing | Produces texts of varying complexity using language appropriate to audience and purpose to convey information accurately and effectively |
Problem solving | Makes critical decisions effectively in complex situations, based on evaluation against set criteria |
Self-management | Follows legislative requirements, and organisational policies and procedures relevant to work activities |
Teamwork | Selects and uses appropriate communication conventions and protocols to liaise with others |
Sectors
Superannuation