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Elements and Performance Criteria

1. Receive application and verify data
   • Receive new income stream application, including payment where it is not an internal transfer within the organisation, and compile necessary documentation
   • Check the documentation is correct and complete including certified copies of appropriate identification
   • Identify and address issues or irregularities and seek advice from team members or authorised personnel if required
   • Gather further information from appropriate sources to proceed with application if required
   • Update new and additional information accurately according to organisational procedures
2. Calculate amount of retirement income stream
   • Calculate the amount of a non-account based income stream taking into account minimum and maximum annual limits
   • Check the payment selected by the member in an account based income stream is within the age related limits
   • Calculate a transition to retirement account based income stream, including from a hybrid fund, taking into account minimum and maximum annual limits
3. Set up new member records
   • Extract information needed to set up income stream from application form and information collected, including setting up Pay As You Go (PAYG) instalments
   • Enter data into organisational system and follow checking and authorisation procedures for setting up new income streams including reversionary pensions
   • 3.3 Process client's nominated investment choice for an account based income stream according to organisational procedures
   • Send confirmation, policy documents or investor certificate and details of cooling off period to client according to organisational procedures
   • File documentation according to organisational procedures
4. Meet compliance requirements
   • Send out periodic statement and PAYG summary, if required, with income stream details
   • Provide clients and government departments with information regarding their income stream product as requested
   • Implement system checks and follow organisational procedures to check for any irregularities of payments
   • Identify consequences of incorrect payments and correct accordingly
   • Comply with regulations and legislation determining compliance of retirement income streams
5. Maintain member records
   • Process requests for changes to client’s nominated investment choice within organisational guidelines
   • Apply earning rates and consumer price index (CPI) adjustments to retirement income stream
   • Determine, on an annual basis, that nominated account based income stream payments are within the relevant age range set out by legislation, and make adjustments
   • Maintain changes of client’s personal details including allowable changes to nominated beneficiaries

Performance Evidence

Evidence of the ability to:

follow organisational procedures to process applications and establish retirement income streams for clients including processing all documentation accurately

process rollover payments according to organisational requirements

access member contract guidelines and prepare income benefit documentation

process commutations and explain to clients how pensions and annuities are taxed

calculate the tax payable on an income stream paid to a client taking into account the client's age

accurately process incoming payments and outgoing benefits.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

describe the key features and benefits of retirement income stream products

outline key features of organisational policies and guidelines in relation to the establishment of income stream products including the steps in:

setting up an income stream and the documents required including the verification process

maintaining an income stream and the documents required including proof of life for non-account based income streams

explain key features of regulatory requirements relevant to the establishment of retirement income streams

identify key features of the Australian Privacy Principles

discuss ethical considerations in handling confidential and private client information

explain the ways and processes by which a person can purchase a retirement pension or annuity

explain the position and implications for beneficiaries in establishing a retirement income stream including relevance to reversionary pensions, account based income streams, death benefit nominations and estate planning

explain requirements for accessing an income stream

identify the consequences of incorrect processing of income stream payments, incorrect maintenance of the income stream and other breaches.

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