Question
How can I create a Pension document?
Answer
This article outlines how to use the NowInfinity platform to establish a Pension/Income Stream for a member.
Navigate to Menu > Create Document.
The Pension Document is located under the "Pensions" heading.
Step 1: Fund Details
Enter in the details of the member's SMSF
Step 2: Trustee
Enter the details for the Trustee of the SMSF.
Step 3: Member
Enter the details of the Member who will be commencing the Pension.
Step 4: Pension Type
Select the applicable Pension Type:
- Account Based Pension is a retirement income stream which you can commence only once you've met a condition of release (e.g. reaching preservation age and retiring, ceasing employment on or after 60 years of age, turning 65 (even without retiring), experiencing severe hardship etc.).
- Market Linked Pension is a pension paid from a Fund, that is based on the balance of the member's account at commencement of the pension.
- Transition to Retirement Income Stream (TRIS) must be an account-based pension. It allows people who have reached their preservation age (i.e. the minimum age that a member can access their preserved super benefits without satisfying another condition of release. For those born before 1 July 1960 the preservation age is 55. For those born on or after 1 July 1960 it is higher). The member must reach preservation age to access their superannuation benefits without having to retire or leave their job. The amount paid must meet a specific minimum and must not exceed 10% of the account balance on the commencement of a TRIS for the year it starts or on 1 July for each subsequent year. For further information, click here.
Step 5 : Pension Details
- Enter the Pension details, as applicable.
- Select the relevant Condition of Release
- Pension Account Balance - Amount to be converted to pension (Note the Transfer Balance Cap)
- Current Year Payment - Amount based on the required minimum annual payment, pursuant to the SIS Act.
- Tax Free Percentage - For any contributions that are non-taxable/non-concessional
- Reversionary Pensioner Name (if applicable); Reversionary Terms and Conditions - for further information: How to establish a "Reversionary Pension"
Step 6 : Asset Segregation
Add assets that are identified as supporting the member pension account.
Step 7 : Presentation and Ready to submit
Select your Presentation option and Complete.