Overview

How do I add reversionary details to an existing pension?

1. Select the relevant pension account (Click on the member code.).
   
   
2. Expand the Show Nominate Beneficiaries:
    
   
3. Select Yes next to Reversionary Pension. 
   
4. Select Add Beneficiary to add the details of the reversionary beneficiary. 
   
   
   
   
5. Select Save
   

The pension letters and minutes will be automatically updated indicating the pension will automatically revert to the nominated beneficiary.

The financial year the primary pension member passes away

A pension ceases as soon as the member in receipt of the pension dies unless a dependent beneficiary is automatically entitled to a reversionary pension. When the pension automatically reverts, there is a requirement for the minimum pension amount to continue to be paid.

When it is not a reversionary account based pension, a minimum pension payment is not required in the year of death.

If the deceased member’s benefits are used to commence a new pension for a beneficiary, you need to ensure the new minimum annual pension amount is paid in the relevant year. 

When a pension recipient dies during the income year and the pension was reversionary, the minimum percentage factor is based on the age of the member who was in receipt of the pension as at 1 July of the current income year, not the reversionary beneficiary. No change is required in Simple Fund 360, You can continue to post to the nominated pension account (41600/MemberCode) and record the Date of Death for the deceased member in the Contacts list.  The minimum will be recalculated 1 July based on the reversionary beneficiary's age at that time.

Relevant documentation confirming that the pension will be transferred to a reversionary beneficiary on and from the death of the primary pensioner will need to be completed. Documentation will need to be done outside Simple Fund 360. However, you can upload the documentation in the Documents tab.

References: 

• SMSF Assist
• ATO Website - Death of a Member 
• TR 2013/5 - Income tax: when a superannuation income stream commences and ceases

Subsequent Financial Year - Commencing Reversionary Pension

The minimum pension calculation will be based on the age of the nominated beneficiary. An internal transfer will need to be recorded in Simple Fund 360.

If the beneficiary was not a member of the fund prior to death or does not have an accumulation balance: 

1. Add an accumulation account for the beneficiary to transfer the pension balance; (If the transfer occurs part way through the  year, you will need to Create Entries the day before the event)
2. Transfer the deceased member's pension balance to the beneficiary's accumulation account (see below)
3. Complete a pension commencement for the beneficiary to commence the pension; 
4. If the deceased member had multiple pension accounts to be reverted, you will need to repeat this steps 3 and 4 again for each pension;
5. Input a cease date and date of death for the deceased member. 

If the nominated beneficiary is already a member of the fund and has an existing accumulation account, to complete the transfer:

1. Input a temporary cease date in the existing accumulation account of the nominated beneficiary in the Member List;
2. Add a new temporary accumulation account for the beneficiary to transfer the pension balance;
3. Transfer the deceased member's pension balance to the beneficiary's accumulation account (see below)
4. Complete a pension commencement for the new account; 
5. If the deceased member had multiple pension accounts to be reverted, you will need to repeat this steps 3 and 4 again for each pension;
6. Remove the temporary cease date input in step 1;

7. Input a cease date and a date of death for the deceased member

How to record an internal transfer

Use the Internal Transfer feature to move amounts from the deceased to the dependant. 

Switch Account to Pension

Refer to Commencing a Pension for instructions on switching the account from accumulation to pension.

Cease the Deceased Member

From the Member List, select the deceased member. 

Under the Account Details section, input the internal transfer date in the End Date field. 

Select Save.

Migrated Funds

Please note that Reversionary Pensions are not preserved when migrated from Simple Fund Desktop to Simple Fund 360.

To mark an existing Pension as Reversionary, please follow the steps in "How do I add reversionary details to an existing pension?" above.

Related Pages

• How to Enter Rollover or Lump Sum Payments (when recording a death benefit payment)
• How to Enter a Lump Sum Rollin
• The Member List
• Commencing a Pension
• Contacts