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Evidence Guide: FNSSUP431 - Terminate retirement income streams

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSSUP431 - Terminate retirement income streams

What evidence can you provide to prove your understanding of each of the following citeria?

Process outstanding transactions

  1. Determine identity and authority of person making enquiry in respect of client’s income stream
  2. Respond to enquiry relating to terminating retirement income stream by detailing proposed actions according to organisational policies and procedures
  3. Identify the type of income stream
  4. Determine whether the client is requesting a full or partial withdrawal or commutation from the income stream
  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
  6. Assess whether client is exercising their rights under the cooling-off period
Determine identity and authority of person making enquiry in respect of client’s income stream

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Respond to enquiry relating to terminating retirement income stream by detailing proposed actions according to organisational policies and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify the type of income stream

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine whether the client is requesting a full or partial withdrawal or commutation from the income stream

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess whether client is exercising their rights under the cooling-off period

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete and action fund documentation

  1. Record and communicate options to client or beneficiary and process required action according to their instructions and organisational procedures
  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
  3. Contact relevant person to obtain complying benefit payment request where payments are requested to be made to a third party
  4. Action client request to roll over a lump sum to another superannuation fund according to organisational procedures
  5. Establish a new reversionary income stream resulting from the termination of client’s income stream according to organisational policies and procedures
  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
Record and communicate options to client or beneficiary and process required action according to their instructions and organisational procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contact relevant person to obtain complying benefit payment request where payments are requested to be made to a third party

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Action client request to roll over a lump sum to another superannuation fund according to organisational procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish a new reversionary income stream resulting from the termination of client’s income stream according to organisational policies and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine taxable component of terminated income stream

  1. Determine payment of a lump sum from an income stream, complying with legislative and regulatory requirements
  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. Use Australian Tax Office (ATO) guidelines to confirm dependency status and age of beneficiaries or estate recipients where a lump sum is payable
  4. Follow organisational procedures regarding payment of a tax anti-detriment adjustment where a lump sum is payable to beneficiaries or the estate
  5. Calculate and record relevant tax component in system according to legislative requirements and operational procedures
  6. Prepare documentation relevant to taxation calculations and forward to required personnel for review according to organisational policies and procedures
  7. Determine entitlements within authority levels and obtain sign-off
  8. 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
  9. File copies of documents correctly and in a timely manner
  10. Respond to further client enquiries and refer complex enquiries to required personnel
  11. Implement system and process checks according to organisational policies and procedures, and correct irregularities
  12. Communicate irregularities to required personnel according to organisational policies and procedures
Determine payment of a lump sum from an income stream, complying with legislative and regulatory requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Use Australian Tax Office (ATO) guidelines to confirm dependency status and age of beneficiaries or estate recipients where a lump sum is payable

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Follow organisational procedures regarding payment of a tax anti-detriment adjustment where a lump sum is payable to beneficiaries or the estate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate and record relevant tax component in system according to legislative requirements and operational procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare documentation relevant to taxation calculations and forward to required personnel for review according to organisational policies and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine entitlements within authority levels and obtain sign-off

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

File copies of documents correctly and in a timely manner

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Respond to further client enquiries and refer complex enquiries to required personnel

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement system and process checks according to organisational policies and procedures, and correct irregularities

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communicate irregularities to required personnel according to organisational policies and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Required Skills and Knowledge

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.

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.