How to create a Pension Document

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:

1. 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.).
2. 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.
3. 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

1. Enter the Pension details, as applicable.
2. 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.