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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Process contributions to defined benefit funds
   • Identify and follow rules guiding compulsory payments into defined benefit funds
   • Receive and process contributions according to fund requirements
2. Process payment of benefits in defined benefit fund
   • Investigate options for benefit payment in defined benefit funds
   • Calculate benefit to include additional fees, charges, taxes and other factors
   • Process benefits and pensions according to fund requirements
   • Communicate with beneficiaries according to organisational procedures
3. Process and maintain documentation and records according to defined benefit fund requirements
   • Correctly document all transactions in member records
   • Prepare statements and receipts, and issue to members according to organisational procedures
   • Maintain member records to ensure currency and accuracy
   • Generate certificates, benefit information and taxation information, and provide according to legislative requirements
   • Generate fund information and provide to actuary for preparation of necessary certificates
4. Implement quality assurance procedures
   • Identify requirements of legislation and regulations specific to defined benefit funds and incorporate into activities
   • Follow organisational procedures to ensure work is completed accurately
   • Establish member details and maintain in accordance with organisational requirements
   • Implement system and process checks, and identify any irregularities
   • Correct any irregularities or communicate to appropriate personnel

Performance Evidence

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.

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Knowledge Evidence

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.

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