If the new Member Account is to commence from July 1, you should by now have processed End of Year and calculated Member Balances as at June 30.
If the new Member Account is commencing on any date other than July 1, you should by now have completed the procedure to calculate the Member’s Interim Account Balance.
You will now create and populate the new member account and transfer the balance.
From the SETTINGS menu, select PENSION ADMINISTRATION
Select the Member whose account you wish to convert.
The Account data displays. Move to the ACTION column below the Member list and select the type of account you wish to commence.
- Commence ABP (Account-based Pension)
- Commence TRS (Transition to Retirement)
- Internal Transfer (move funds from one account to another)
You can also elect to edit an existing account.
The remainder of these instructions assume you are commencing either an Account-based Pension or a Transition to Retirement Account.
Enter the Commencement Date for the new account.
Click the RETRIEVE MEMBER BALANCE button.
If an error message displays telling you there is no Interim Balance, go to FINANCIAL PERIODS on the SETTINGS MENU to check which years have been closed and which Interim Periods have been setup and finalized. You cannot commence a new account unless either:
- the commencement date is July 1 and the Financial Year ended June 30 in that year has been closed (In the example below you can start a pension on July 1, 2017);
- an interim period has been created and balances computed for that period (refer to Section 3.1.1)
If an error message warns that account balances are not available for the selected date, you must either select a date for which account balances have been computed, or close the period immediately preceding the date on which you wish to start the new account.
To complete the account conversion process, you need to fill in all fields on the displayed Member Account screen. These are grouped into sections:
- Account Details
- Benefit and Preservation Components
- Pensioner Purchase Details
- Reversionary Pension Details
- Death Benefit Details
Account type and Commencement date will auto-populate based on data already entered, and cannot be changed.
In the ACCOUNT DESCRIPTION field, enter a descriptive name for the new pension account. Be sure to use a description that will easily identify both the Member and the Account type, so that it is readily distinguishable from other accounts when you are selecting an Account to which to post entries. For example, ‘’Mick Jones TTR Acc’’ or ‘’Joe Bloggs Pension Acc’’.
In the Conditions of Release field, select the appropriate conditions of release from the drop-down list. (Refer to the Appendix for explanations of the options.)
Mclowd will display the available member balance and its preservation and taxable components. Fields are auto-populated and protected based on the current member balance.
Answer YES or NO to the question ‘’Transfer preservation components to Unrestricted Non-Preserved’’. (Refer to the section on Preservation Rules in the Appendix to this Chapter)
Select the type of payment the member has requested for the pension account you are establishing.
Whole Accumulation Balance: The entire balance in the accumulation account will be transferred to the new pension account. The Purchase Price field will display the full accumulation account balance. (The Accumulation Account balance will now revert to $0.)
Partial: In the Purchase Price field, enter the amount you wish to transfer from the Accumulation Account to the Pension Account. (The Accumulation Account balance will reduce by this amount.)
In the Has Reversionary Nominee field, click YES if you wish to enter a Reversionary Nominee. Click NO if you do not wish to record a nomination. (Refer to Understanding Reversionary Pension Nominations in the Appendix to this chapter.)
If you answer Yes, Mclowd will display the names of other members of your Fund whom you may wish to nominate as Beneficiaries. You can either select one, or click Other to specify someone else.
If you select Other, Mclowd will display Beneficiary Nominee fields into which you can enter the name, date of birth and gender of your selected nominee.
Note that the Fund Trust Deed must permit nomination for this nomination to be valid, and your nomination must comply with legislation. Refer to the Appendix for more information, and seek professional advice if uncertain.
Answer YES or NO to the question Established from death benefit? Refer to the Appendix for more information.