List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Process contributions to defined benefit funds | 1.1 Identify and follow rules guiding compulsory payments into defined benefit funds 1.2 Receive and process contributions according to fund requirements |
2. Process payment of benefits in defined benefit fund | 2.1 Investigate options for benefit payment in defined benefit funds 2.2 Calculate benefit to include additional fees, charges, taxes and other factors 2.3 Process benefits and pensions according to fund requirements 2.4 Communicate with beneficiaries according to organisational procedures |
3. Process and maintain documentation and records according to defined benefit fund requirements | 3.1 Correctly document all transactions in member records 3.2 Prepare statements and receipts, and issue to members according to organisational procedures 3.3 Maintain member records to ensure currency and accuracy 3.4 Generate certificates, benefit information and taxation information, and provide according to legislative requirements 3.5 Generate fund information and provide to actuary for preparation of necessary certificates |
4. Implement quality assurance procedures | 4.1 Identify requirements of legislation and regulations specific to defined benefit funds and incorporate into activities 4.2 Follow organisational procedures to ensure work is completed accurately 4.3 Establish member details and maintain in accordance with organisational requirements 4.4 Implement system and process checks, and identify any irregularities 4.5 Correct any irregularities or communicate to appropriate personnel |
Evidence of the ability to:
explain the design of defined benefit funds to members
process contributions and payment of benefits in a defined benefit fund, including additional fees, charges and taxes
interpret trust deed conditions, establish special circumstances and make informed recommendations about benefit payments
identify, source and interpret required information to process benefits for lump sum payments, death claims and disablement claims
assess and determine benefit entitlements for lump sums, pensions, and death and disablement claims using computer programs
accurately process contributions, benefits and insurance claims according to organisational guidelines and relevant legislation.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
identify key features and eligibility conditions affecting defined benefit funds
explain advantages and disadvantages of:
accumulation and defined benefit funds
different methods of contributing to defined benefit funds
identify requirements of legislation and regulations specific to defined benefit funds
identify funding options for defined benefit funds
describe the effects of the following on defined benefits:
part-time and casual employees, and leave
resignation, dismissal and redundancy
death and disability
describe the application of privacy legislation
compare and contrast different types of retirement benefits and eligibility
outline the key factors affecting retirement benefit design
outline the effect and use of actuarial tools (compound interest and probability)
describe the role of actuaries in determining payment of benefits
explain the legal requirements for actuarial investigations of defined benefit funds
identify formulas used to calculate defined benefits
outline consequences of incorrect processing of contributions and benefits
describe the influences on fund and benefit design
describe how commutation of pensions work
outline the implications and procedure for actuarial investigations
discuss issues associated with pensions and lump sums
explain the process and implications of:
changing fund structures
transfer between superannuation funds
calculating the value of future liabilities, the valuation of assets and the establishment of the contribution rate
describe special provisions relating to public sector defined benefit funds
outline taxation implications of defined benefit funds
explain the role of employers and members in contributions made to defined benefit funds.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the superannuation field of work and include access to:
common office equipment, technology, software and consumables
organisational financial records
organisational policy and procedures.
Assessors must satisfy NVR/AQTF assessor requirements.