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Defined benefit pension solvency issues expected

Defined benefit & market-linked pensions

1 Jul 2020

SMSFs paying legacy defined benefit pensions require an actuarial valuation each year to ensure they remain solvent. Upcoming solvency tests will be based on asset values as at 30 June 2020. Despite a partial recovery in equity markets since the lows of March, prices have been impacted across almost all asset classes.

Changes to ECPI delayed

ECPI, segregation and actuarial certificates

30 Jun 2020

Assistant Treasurer Michael Sukkar announced yesterday that the changes to exempt current pension income (ECPI) that were announced in the 2019 Federal budget have been delayed.

SMSF annual return lodgements

Income streams/pensions

9 Apr 2020

With the 15 May 2020 deadline fast approaching for the 2018-19 SMSF annual returns (SAR) lodgement for many SMSFs, the Australian Taxation Office (ATO) has recognised that some accountants and auditors may require more time due to the impact of the COVID-19 pandemic.

Action needed on legacy pensions

Defined benefit & market-linked pensions

24 Feb 2020

Various industry bodies, including the SMSF Association and the Tax Institute, have all raised the need for reform to help retirees trapped in legacy income streams in self-managed superannuation funds (SMSFs). The Actuaries Institute has now joined the chorus for change with its own submission to Treasury.

Four questions about recommencing a pension that failed to meet the minimum pension standards

Income streams/pensions

28 Oct 2019

When an account-based income stream fails to meet the minimum pension standards required under Subregulation 1.06(9A) of Superannuation Industry (Supervision) Regulations 1994 (SISR) it will not have met the requirements of being a superannuation income stream in that year.

Actuarial Certificate Application Form – common issues

ECPI, segregation and actuarial certificates

28 Oct 2019

The 2019 financial year has ended, and it is now time to start thinking about finalising fund accounts, audits and submitting the SMSF tax return. A part of this process will be determining if the fund has ECPI, and if so, how much. For an unsegregated fund this will require an actuarial certificate. This article will look at the certificate application process and some of the issues that we see when clients submit their application.

Over 2 in 5 SMSFs on track for a $100,000 p.a. lifestyle in retirement

Retirement strategies

21 Oct 2019

SMSF couples need $2 million in savings at retirement to be confident of affording a $100,000 p.a. lifestyle in retirement. The good news is that 40% of 65-year-old SMSF couples have saved enough in their funds to meet this aspirational lifestyle.

Three new features to our actuarial certificate process

ECPI, segregation and actuarial certificates

21 Aug 2019

In response to your feedback from our recent client survey we have implemented three new features in our actuarial certificate application process.

ATO guidance update – are you confused? I am.

Income streams/pensions

24 Jul 2019

The original guidance in our view was relevant to both a new death benefit income stream taken by an eligible beneficiary and a reversionary income stream that is paid to a beneficiary upon death of the original pensioner.

ATO provide clarity on death benefit income streams which don’t meet the minimum pension standards

Income streams/pensions

22 Jul 2019

Recently there has been some confusion around whether a death benefit income stream which failed to meet the minimum pension standards would be required to pay out the entire amount as a death benefit lump sum in order to meet the cashing requirements of paying a death benefit.

More changes to ECPI on the horizon

ECPI, segregation and actuarial certificates

10 Jul 2019

For over a decade, the SMSF industry’s interpretation of existing legislation was that assets could only be segregated to support an income stream where the trustees of a superannuation fund had elected to do so. Following the 2016 Super Reforms, the ATO revisited its interpretation of the legislation and took a contrary view to the prevailing practice in the industry.

Uniform transactions are returning to the Accurium application form

ECPI, segregation and actuarial certificates

23 Jun 2019

To accommodate deemed segregation for the 2017-18 financial year onwards our actuarial certificate application form needed major updates and as a consequence the popular uniform transaction feature needed to be removed.

Defined benefit pension solvency issues expected

Changes to ECPI delayed

SMSF annual return lodgements

Action needed on legacy pensions

Four questions about recommencing a pension that failed to meet the minimum pension standards

Actuarial Certificate Application Form – common issues

Over 2 in 5 SMSFs on track for a $100,000 p.a. lifestyle in retirement

Three new features to our actuarial certificate process

ATO guidance update – are you confused? I am.

ATO provide clarity on death benefit income streams which don’t meet the minimum pension standards

More changes to ECPI on the horizon

Uniform transactions are returning to the Accurium application form

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