How do I add reversionary details to an existing pension?
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.
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:
If the nominated beneficiary is already a member of the fund and has an existing accumulation account, to complete the transfer:
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.
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.