| ActiveSuper Fund Accounts and Investing |
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| ActiveSuper services provides complete investment and accounts management services for all fund investment types and benefit payment structures. |
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| Establishment and management of ActiveSuper investment account |
| Upon approval of an application to use ActiveSuper administration services, an ActiveSuper investment account is established which includes full ledgers and accounting systems to enable the proper management of all financial transactions in and out of the fund. |
| Where a fund is an existing fund, the existing accounting records are transferred into the ActiveSuper investment account structure. |
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| Establishment and management of fund bank account and authorisation details |
| A fund must have one bank account, through which all cash financial transactions are recorded. Upon commencing with the ActiveSuper services, ActiveSuper is given authority to receive regular bank statements regarding the account to ensure regular bank reconciliation reports can be undertaken against all other financial transactions. |
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| Establishment and management of ActiveSuper member accounts |
| All member accounts are established at the time of establishing an ActiveSuper service. The member account enables trustee(s) to nominate a portion, splits and even specific assets to which member accounts are linked. |
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| Establishment and management of ActiveSuper beneficiary/pension accounts |
| Separate to member accounts, when a fund is established with ActiveSuper any beneficiary/pension accounts are also established. |
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| Accessing superannuation benefits |
| Superannuation benefits comprise all deposits, the investment earnings which accrue (including positive and negative returns) and proceeds from any relevant insurance claims (if applicable), less taxes, government charges, fees, any other costs, any insurance premiums (if applicable) and any other withdrawals. |
| When a member/trustee withdraws from the fund, they need to complete and sign a ‘Benefit Payment/Commutation Form’ and send it to ActiveSuper. |
| Superannuation laws protect the super savings of individuals and restrict the accessibility of funds. In general, a member/trustee cannot access their benefits until they have reached age 65, or have reached their preservation age and have retired or meet another condition of release. |
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| Superannuation benefit categories |
| There are three benefit categories applicable to superannuation, they are: » preserved benefits; » restricted non-preserved benefits; » unrestricted non-preserved benefits. |
| Unrestricted non-preserved benefits are accessible at any time. However, access to preserved and restricted non-preserved benefits is governed by superannuation laws. |
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| Pre-retirement pension and term allocated pensions |
| Once a member/trustee reaches their preservation age they can access their superannuation benefits as a non-commutable income stream through a pre-retirement pension. |
| This condition of release means the person can receive pension payments even though they may be still working. |
| However, a member of a fund is unable to make lump sum withdrawals unless they are withdrawing unrestricted non-preserved benefits or meet another condition of release. |
| Note that lump sum withdrawals are only allowed in limited circumstances from a term allocated pension regardless of whether an unrestricted condition of release is met. |
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| Pension benefits Pension payments |
| A member/trustee may choose to have their benefit entitlement paid as a lump sum, a pension, or a combination of both as described below. You should consult an appropriately qualified professional prior to requesting payment of your benefits. |
| When a member of a fund intends to withdraw a lump sum from the fund, they need to complete and sign a Benefit Payment/Commutation Form and send it to ActiveSuper. |
| Pension payments are generally tax-free once a person is aged 60 but are otherwise subject to different income tax rates and these depend on the circumstances of the member. |
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| Nominated beneficiaries and estate planning |
| There are two types of nominations – binding and discretionary. With the exception of a term allocated pension account that has been established with a binding reversionary pension nomination, you can change your death benefit nomination at any time. |
| Benefits can generally be paid as a lump sum or pension. Under superannuation law, the form of payment allowed may be restricted by the type of beneficiary. Your Trust Deed may restrict the type of benefit further. |
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