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Certificates
Account based pensions
Description | Fees | Back to Certificates
Description
Background
Actuarial certification of the ability of superannuation funds to pay contracted account based pensions is required. These certificates can be used to "segregate" assets into those supporting "current pension liabilities". If assets are not segregated, an annual actuarial certificate is needed to determine the proportion of income that applies to current pension liabilities. This portion is tax free.
In addition, the practice can supply certificates of the maximum and minimum permissible account based pensions and projections of the funds.Client assisted certificates
The practice has developed a workbook, which can be used by accountants and fund adminstrators to provide the necessary information for a tax certificate and simultaneously calculate the tax free proportion and, if required, members' final balances. Clients can populate the workbook and send it to the practice for final checks and certification. While not valid until signed, the workbook provides information to allow clients to continue preparing the accounts and returns of funds in anticipation of the final signed certificate.
Information needs
The information that the practice usually needs to do any work for self managed superannuation funds depends on the segregation or otherwise of the fund’s assets and the nature of the pensions provided. It includes:
Segregated assets Unsegregated assets or first year Account based Lifetime Fixed term Trust Deed (a) y y y y y Draft accounts (b) y y Journals (contributions and benefits) n y Dates of birth (c) y n Valuation date pension $ per annum y y Reversionary proportion n y n Indexation rate n y y Next indexation date n y y Fixed or guaranteed term ends n y y Pension creation minutes n y y Investment Policy n y y Previous actuarial reports (d) (d) (d)
(a) In the case of second or subsequent assignments, a statement to the effect that there has been no change in the trust deed is sufficient.
(b) Year end or commencement of pension.
(c) Only required if certificate of maximum and minimum pension is needed.
(d) Last certificate and (for first review) reports dealing with the creation of pensions.Timing
Certificates are normally produced within five business days of receipt of all information. Urgent tasks will be completed within two business days and attract a 15% surcharge.
