How to create a Pension Document – NowInfinity

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 > Documents > Create Document > Pensions.

Step 1: Fund Details

Enter in the details of the member's Fund.

Note: It is very important that you have read through and applied the Fund's Deed as it is key in determining what type of pension may be paid from the Fund.

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Step 2: Trustee

Enter the details for the Trustee/s 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 and the Condition of Release.

Account Based Pension is a retirement income stream which you can commence only once you've met a condition of release (under Schedule 1 of the Superannuation Industry (Supervision) Regulations 1994 ('SISR')). The most common condition of release is retirement, as defined by 6.01(7) SISR. In an Account Based pension, there are certain legal requirements of a Pension Member e.g. the Pension Member must take a minimum payment each year from their account.
The Transition to Retirement Income Stream (TRIS) 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, and for those born on or after 1 July 1960 it is higher) to access his or her superannuation benefits as a non-commutable income stream without the need to retire from employment. The amount paid must meet a specific minimum and also cannot exceed 10% of the account balance on the commencement of a TRIS for the year it starts on, or on 1 July for each subsequent year. For further information, click here.