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Adding or updating a market-linked income stream 108-05060020

This pageexplains how to assess and code market-linked income stream products.

Staff trained in Process Direct select the Process Direct tab. Staff not trained, select Customer First.

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Adding or updating an income stream

Recording income stream details

Updating Provider Name and/or Product Reference Number for existing income streams

Coding a new income stream

Adding or updating an income stream

Table 1

Step	Action
1	Check update(s) needed If the customer has supplied a copy of an income stream schedule, upload the copy to the customer's record. Is the customer only contacting to add or update a market-linked income stream? Yes, go to Step 3 No, go to Step 2
2	Discuss all the income and assets updates Discuss Income and assets updates with the customer (for example, income stream, shares, foreign income). Complete the updates if all the coding can be finalised. If there are concerns with the legitimacy of the customer's information, see Coding income and assets for Centrelink payments and services. Can the customer provide all the other information needed? Yes, go to Step 3 No: further information or documents needed before the updates can be done check if additional information for the income stream update is needed go to Step 3
3	Completing updates and documents needed Service Officers with the correct skill tag can process new and existing market-linked income streams at point of contact for all payment types. Note: do not add new income streams if the customer does not supply an income stream schedule. Documents: For existing market linked income streams: No documents are needed for current account balance or gross annual income changes unless the change is due to a commutation A Details of income stream product (SA330) or similar schedule completed by the provider is needed for partial commutations and a change to gross annual income from a commutation or if changes to the provider name and/or product reference number have occurred following a successor funds transfer For new income streams, an SA330 or similar schedule completed by the provider is needed If the customer can provide all needed information Yes, go to Step 5 No, go to Step 4
4	Request documents Tell the customer, all information is needed before any change can be updated, so the correct entitlement is paid. Tell the customer of the information they must provide. See Requesting information (CLK) Use Mail Forms if a form needs to be sent Ask for the information to be returned within 14 days Note: where the customer or partner is unable or unwilling to provide information due to FDV (Family and Domestic Violence), escalate to AISR support. AISR support will request the information directly from the provider. Procedure ends here until documents returned.
5	Income stream has been updated in this financial year Check if a Service Officer has applied an update for the product in this financial year as part of the Automation of Income Stream Reviews (AISR) process. The DOV to be used now is before the DOV on the SUPV screen There will be a DOC on Document List about an ‘Income stream review manual update’. The Interaction History will also contain provider data information for the related product. Did a Service Officer update the product in this financial year as part of the AISR process and the DOV to be used now is before to the DOV on the SUPV screen? Yes, go to Step 7 No, go to Step 6
6	Notifying changes to an existing income stream from 1 July and before the annual August review If the customer is: notifying changes to an existing income stream from 1 July and before the annual August review has been completed, see Step 1 in Table 2. advising: a change to the current account balance, see Step 3 in Table 2 a commutation or a change in gross annual income from a commutation, see Step 6 in Table 2 a change in gross annual income not from a commutation, see Step 11 in Table 2 a change to the provider name and product reference number following a Successor Fund Transfer, see Step 1 in Table 3 the expiry date for the product, see Step 10 in Table 2 the income stream has expired, see Step 16 in Table 2 new income stream details, see Step 1 in Table 4 providing information as part of a review, see Income stream reviews
7	Create a Fast Note Escalate by creating a Fast Note in Customer First: Select Auto Text, use Older Australians > Update > Action req – Auto Income stream review Document the action needed If a work item exists, re-categorise as ZIAM_AISR_SUPS Procedure ends here

Recording income stream details

Table 2

Step	Action
1	Customer advising of changes from 1 July and before August review The customer may be notifying new gross annual income from 1 July or the new current account balance. Other than for self-managed superannuation fund (SMSF) or small APRA superannuation fund (SAF), the information being notified by the customer will be provided to Services Australia in August as part of the “Automation of income stream reviews” process. If there is a need to make the update before the August review, for example, the change will be payment effecting, go to Step 2. Is the customer’s income stream from an SMSF or SAF? Yes, tell the customer they can either: wait for the August review using online services as outlines in the review letter, or provide a current income stream schedule No, tell the customer their income stream will be updated automatically when their provider supplies the information directly to the agency for the review
2	Updates from 1 July and before August review All the information requested for the review must be provided and updated using the Income Stream Update guided procedure: 1 July account balance The new nominated gross annual income amount for the current financial year Any commutations made in the previous financial year. Note: an MLI is generally a non-commutable income stream, except in very limited circumstances. Determine if the commutation is allowable or not, and The current account balance Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##”, see Table 4, Step 8. A manual review must be set to expire all market-linked products in the final year. See Table 4, Step 9. 1 July balance The 1 July account balance can only be updated once in a financial year If another update is made in the same financial year, an error “E011SN – 1 July Balance field can only be updated once in a financial year” is displayed If a coding error is made, the event has been updated and a correction is needed, delete the page and re-code the correct information. Note: if deleting a page, make sure the new page is inserted with the correct details Do not update new gross income only. If other details are completed with an Event Date 1 July or later, the system will treat the 1 July account balance as updated as well and not allow any further changes for the financial year All details are to be updated in the one transaction to prevent the review letter being sent to the customer in August and re-work because the 1 July account balance was not updated If the income stream schedule is issued or dated before 1 July, do not accept for updates from 1 July. A new schedule from 1 July is required If the account balance for 1 July is not provided but a current account balance for another date in July is provided, this is acceptable and can be used to update 1 July account balance See August review of income streams for full details of updates needed. Procedure ends here.
3	The customer has contacted to update the current account balance of their or their partner's income stream If the current account balance has changed because of a commutation, the customer must provide an income stream schedule. Go to Step 7 If the current account balance has increased significantly, ask the customer if they have started a new income stream. Some providers re-use product reference numbers. If it is a new income stream, the customer must provide income stream schedule. Go to Step 7 For other updates, go to the Pension/Annuities Summary (SUPS) screen. Are details for the market-linked income stream already entered? The product type code should be MLI. Yes, go to Step 4 No, the customer must provide income stream schedule. Go to Step 7
4	Update current account balance Use the Income Stream Update guided procedure. To update manually: 'S'elect the appropriate product from the SUPS screen and select Continue Check details on the Pension/Annuities Identification (SUPI) screen are correct and select Continue On the Pension/Annuities Details Variable (SUPV7) screen make the necessary changes to following fields: Event Date: date of the change Current Account Balance: the new current account balance Source, DOR, and Action fields Select Continue Check the SUPS screen displays the updated income stream details Complete the activity on the Assessment Results (AR) screen Record details on a DOC Procedure ends here.
5	Change to existing income stream While in the income stream owner's record, go to the Pension/Annuities Summary (SUPS) screen. Are there details for the income stream for the product type market linked income (MLI) already entered? Yes, go to Step 6 No, the customer must provide income stream schedule. Go to Step 7
6	A commutation or a change in gross income due to a commutation Commutation A market-linked income stream is non-commutable except in extremely limited circumstances If a partial commutation is made or the product must be cancelled because of a full commutation, determine if the commutation is allowable or not See Commutation of asset-test exempt (ATE) income streams Gross annual income The income stream provider calculates the gross annual income. Service Officers must not undertake this calculation. Get a current SA330 or similar schedule from the income stream provider before making any changes to the gross annual income from a commutation. Is the customer advising of a commutation or a resulting change to Gross income? Yes, and documents: have not been supplied yet, go to Step 7 have been supplied, go to Step 9 No, procedure ends here
7	Has the customer or partner supplied an SA330 or similar schedule for each income stream Yes, go to Step 9 No, go to Step 8
8	Request documents If a customer needs to supply SA330 or a schedule for an income stream: Tell the customer of the information they must provide Request all the information they must provide. See Requesting information (CLK) Use Mail Forms to issue the SA330 or tell the customer to ask their provider for an income stream schedule: the SA330 must be completed by the income stream provider for income streams purchased from a retail provider or the Trustee for income streams paid from a Self-managed superannuation fund (SMSF) or Small APRA fund (SAF). Note: some SMSFs may have a retail provider as their administrator, for example, AXA, MLC, who may complete the form A provider can issue their own schedule with similar questions that appear on the SA330 and this can be accepted Procedure ends here until documents returned
9	Record details Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##”, see Table 4, Step 8. A manual review must be set to expire all market-linked products in the final year. See Table 4, Step 9. To update an existing income stream: Use the Income Stream Update guided procedure. Take care when updating the gross annual income amount. Procedure ends here To update details manually, check details are correct on the Pension/Annuities Identification (SUPI) screen before updating relevant fields on the Pension/Annuities Details Variable (SUPV7) screen, see Step 1 in Table 4 To add a new income stream, see Step 1 in Table 4
10	Expiry date of market-linked income (MLI) In the final year of the income stream, the customer can elect to have it expire at the end of the actual term or the closest 30 June. When the payment factor (PF) of the income stream reaches 1.0, a new field ‘Term End 30 June?’ will display on the SUPV7 screen The system defaults to ‘No’ Only update if the expiry date is 30 June. If no update needed, leave the default of ‘N’o’. A manual update is the only procedure to update the expiry date. To update the expiry date manually: 'S'elect the appropriate product from the SUPS screen and select Continue Check details on the Pension/Annuities Identification (SUPI) screen are correct and select Continue On the Pension/Annuities Details Variable C7 (SUPV7) screen make the necessary changes to following fields: Event Date: date of the change Term End 30 June? - change default ‘N’o to 'Y'es if expiry date is 30 June. Complete the Source, DOR and Action fields Select Continue Check the SUPS screen displays the updated income stream details Complete the activity on the Assessment Results (AR) screen Record details on a DOC In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows: Service Reason: customer's payment type Review Reason: select most appropriate reason Due Date: at the end of the product term based on the purchase date and the term or relevant number, or on 30 June of current financial year Source: INT Date of Receipt: today's date Notes: 'Customer elected to expire income stream in final year. Expire the product with cancellation reason EXP.' Keywords: MLIEXP and AISRUPD Workgroup: leave blank Position: leave blank Transfer to Region: leave blank The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action Procedure ends here.
11	Update gross annual income Use the Income Stream Update guided procedure. The income stream provider calculates the gross annual income. Service Officers must not do this calculation. Get a current SA330 or similar schedule from the income stream provider before making any changes to the gross annual income. As part of the Government response the COVID-19 (novel coronavirus) the minimum drawdown limits for market-linked income streams under the Superannuation Industry (Supervision) Regulations 1994 were reduced by 50% for 2019/2020, 2020/2021, 2021/2022 and 2022/2023 financial years. Customers can reduce their gross annual income amount for the financial year, subject to the reduced minimum limit based on the existing 1 July account balance. To update manually: 'S'elect the appropriate product from the SUPS screen and select Continue Check details on the Pension/Annuities Identification (SUPI) screen are correct and select Continue On the Pension/Annuities Details Variable (SUPV) screen make the necessary changes to following fields: Event Date: date of the change Gross Annual Income Amount: the new gross annual income Source, DOR and Action fields Select Continue Check the SUPS screen displays the updated income stream details Complete the activity on the Assessment Results (AR) screen Record details on a DOC Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##”, see Table 4, Step 8. A manual review must be set to expire all market-linked products in the final year. See Table 4, Step 9. If it is not in its final year and the error ‘E022SN - Amount must be within minimum and maximum calculated amounts’ is triggered, check the gross annual income amount. If the gross annual income: matches the Calculated Inc amt field no further coding is needed is less than the Allow Min field amount code the Allow Min amount in the Gross Annual Income Amount field is between the Allow Min and Max field amounts code the amount provided in the Gross Annual Income Amount field is more than the Max field amount, go to Step 12 Procedure ends here.
12	Gross income is more than the Allow Max field amount The income stream no longer complies with Section 9BA: check the record for an income schedule or documents showing the date the gross income exceeded the maximum allowable gross income If sufficient details are not on the record, make 2 genuine attempts to contact the customer by phone: request an income stream schedule. See Requesting information (CLK) use Mail Forms to send an SA330 if the customer requests a form ask for it to be returned within 14 days procedure ends here until documents returned
13	Documents returned If the gross annual income is more than the Max field amount: the income stream: no longer complies with section 9BA, and loses its asset test exempt (ATE) status from the date it exceeded the maximum allowable gross income contact the FINS Helpdesk for advice and in Customer First, create a manual review on the Review Registration (RVR) screen for when advice will be available. Complete the fields as follows: Service Reason: customer's payment type Review Reason: select most appropriate reason Due Date: due date of FINS Helpdesk advice Source: INT Date of Receipt: today's date Notes: 'FINS Helpdesk contacted for advice. Check response and return to OB 108-05060020 for action.' Keywords: MLIEXP and AISRUPD Workgroup: leave blank Position: leave blank Transfer to Region: leave blank the review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action follow the advice of the FINS Helpdesk, and if FINS advise that the product has lost its ATE status, cancel it and record it as non-complying. Go to Step 14
14	Cancel with reason OTH To cancel the product: screenshot the Pension/Annuities Identification (SUPI) screen with the details needed for recoding provider information purchase date reference number and relevant number screenshot the Pension Annuities Details Variable (SUPV) screen data for any date of event (DOV) after the date advised by the FINS Helpdesk select the relevant income stream from the SUPS screen select Continue to go to the SUPI screen on the SUPI screen, code: Product Cancellation Reason field 'OTH' Source: and DOR: as appropriate Action field - 'C' (system will not accept 'I') A warning will display, select 'Y' and continue Select 'Continue' to go to the SUPV screen Update Event Date: with date advised by FINS Helpdesk Note: this can be the end of the product term and is based on the purchase date and the term or relevant number, or 30 June of the final year In the Action field, code 'I' Select Continue. Go to Step 15
15	Recode SUPI Recode as a new product on SUPI Key the information from the screen shots taken in the previous step. The DOV is the date the product was cancelled Section 9A/B/BA Compliant Indicator field, follow FINS Helpdesk coding advice Record any SUPV entries that have a later date of event To add a new income stream, go to Table 4 > Step 1
16	Expire (cancel) income stream Market-linked income streams do not automatically expire on the system at the end of the term. In the final year of the income stream, the customer can elect to have it expire at the end of the actual term based on the purchase date and the term or relevant number, or the closest 30 June. Use the Income Stream Update guided procedure to update the product. If the guided procedure is unavailable, update manually. To update manually: Select the relevant income stream from the SUPS screen Select Continue to go to the SUPI screen On the SUPI screen, code: Product Cancellation Reason field - 'EXP' Source and DOR as appropriate Action field - 'C' (system will not accept I) A warning will display, select Y and continue Select Continue to go to the SUPV screen The system will automatically set the relevant fields to 0 on the SUPV screen Update: Event Date field - Date of expiry as provided by customer Note: this can be the end of the product term and is based on the purchase date and the term or relevant number or 30 June of the final year Action field - 'I' Select Continue Record the details of the circumstances of the cancellation on a DOC.

Updating Provider Name and/or Product Reference Number for existing income streams

Table 3

Step	Action
1	Successor Fund Transfer changes to Provider Name and/or Product Reference Number While in the income stream owner's record, go to the Pension/Annuities Summary (SUPS) screen. The product type code will be MLI. Has the customer provided a current SA330 or similar schedule from the income stream provider? Yes, go to Step 3 No, go to Step 2
2	Documents needed An SA330 or similar schedule from the customer's provider must be provided before the provider name and product reference number can be changed. Issue SA330 using Mail Forms or tell the customer to provide a similar schedule issued by their provider. See Requesting information (CLK) Ask for the information to be returned within 14 days Tell the income stream owner the SA330 must be completed by: The income stream provider for income streams purchased from a retail provider The trustee for income streams paid from a self-managed superannuation fund (SMSF) or small APRA superannuation fund (SAF). Note: some SMSFs may have a retail provider as their administrator, for example AMP and MLC who may complete the form Record details on a DOC Procedure ends here until documents are returned.
3	Update Provider Name and/or Product reference number when document(s) returned 'S'elect the appropriate product from the SUPS screen and select Continue. On the Pension/Annuities Identification (SUPI) screen make the necessary changes to the following fields: Provider or SMSF/SAF Name: For SMSF/SAF only: enter the name of the self-managed superannuation fund manually. Do not code the names of financial planners or accountants For non-SMSF: Code the 3 letter code for the name of the income stream provider. The system will auto populate the correct provider name. Use field help (?) to see the list of provider names with their 3 letter codes. Note: the provider name may not be an exact match to the schedule. If a superannuation fund does not appear in the provider/fund name list in the first instance, please refer to FINS Bulletin page Successor Fund Transfer (SFT) page. If still unable to locate, refer to LPS for support as per normal BAU processes Provider or SMSF/SAF ABN: For SMSF/SAF only, enter the fund’s Australian Business Number For non-SMSF/SAF: this will auto-populate. Note: the ABN may not match the schedule Product Reference Number field – record the correct product reference exactly as it appears on the schedule. The product reference number is unique to each income stream and may show as the product reference number, account number or policy number on the schedule. Do not code the provider ABN or the product name as the product reference number. If the product reference number is incomplete, for example *******305, get the full number from the customer before updating. If there are leading zeroes, code them. Coding incorrect numbers or partial numbers causes the income stream auto updates during the August and February review to fail Source, DOR fields Action field – code 'C' (system will not accept 'I') Select continue On the Pension/Annuities Details Variable (SUPV7) screen, select Continue Check details on the SUPS screen are correct Complete the activity on the Assessment results (AR) screen Record details on a DOC** Procedure ends here.

Coding a new income stream

Table 4

Step	Action
1	The customer advises of a new income stream Use the Income Stream Update guided procedure. To update manually: Code Pension/Annuities Identification (SUPI) screen Product Type Code field: 'MLI' (market-linked income stream) Income stream from SMSF/SAF? field: 'Y'es or 'N'o if the income stream is paid from a Self-Managed Superannuation Fund (SMSF) or a Small APRA Fund (SAF) Provider or SMSF/SAF Name: For SMSF/SAF only: enter the name of the self-managed superannuation fund manually. Do not code the names of financial planners or accountants For non-SMSF: Code the 3 letter code for the name of the income stream provider. The system will auto populate the correct provider name. Use field help (?) to see the list of provider names with their 3 letter codes. Note: the provider name may not be an exact match to the schedule. If a superannuation fund does not appear in the provider/fund name list in the first instance, please refer to FINS Bulletin page Successor Fund Transfer (SFT) page. If still unable to locate, refer to LPS for support as per normal BAU processes Provider or SMSF/SAF ABN: For SMSF/SAF only, enter the fund’s Australian Business Number For non-SMSF/SAF: this will auto-populate. Note: the ABN may not match the schedule Product Name field: Name of the income stream product as stated on the schedule Product Reference Number field – make sure the correct product reference number is recorded as it appears on the schedule. The product reference number is unique to each income stream, and may be shown as: the product reference number account number, or policy number on the schedule Do not code the provider ABN or product name as the reference number Coding incorrect numbers or partial numbers causes the income stream auto updates during the August and February reviews to fail Purchase Date field: Purchase date of the income steam as stated on the schedule. If the income stream is reversionary the original purchase date is used Commencement Date field Same as purchase date Term or Relevant Number field - as stated on the schedule: This is the length of time for which the income stream is payable If schedules and/or provider data are received in decimal places, make sure the Term or Relevant Number is rounded up to a whole number Must be a whole number If not provided on the SA330 or is incorrect, contact the provider to get the correct number or request customer to get a correctly completed schedule from provider It must always be the number that applied at the start date and must not be changed following reversion to a reversionary partner or beneficiary
2	Income stream (SUPI) screen - continued Section 9A/B/BA Compliant Indicator field: Code 'Y'es or 'N'o if the MLI meets requirements under section 9BA of the Social Security Act 1991 to be 50% asset-test exempt (ATE) Code 'N' for an MLI purchased on or after 20 September 2007 unless it was purchased from the commutation of a pre 20 September 2007 MLI, and meets the conditions for retention of the 50% ATE status For more information, see the References page. If a product loses its ATE status, it must be cancelled and recoded as non-complying Start Date Original Commuted Product field: Only coded if the purchase date is on or after 20 September 2007 and the product meets the conditions for retention of the ATE status as above Staff must contact FINS Helpdesk before coding this field. Normal escalation procedures apply, see Resources page for a link to the Online Query Form Product Cancellation Reason field: Leave blank when adding a new income stream If the income stream is fully commuted, cancel the income stream. Do not delete. If the product is cancelled, it stops to be assessed under Income and Assets Tests. Use 'C'orrect in the Action field and the code the cancellation reason. The SUPV screen will display so the Event Date field can be coded Complete Source, DOR and Action fields and select Continue
3	Code Pension/Annuities Details Variable C7 (SUPV7) screen Select the date for the Event Date field using the following information. Reversionary beneficiary The Event Date is the day after the date of death of the primary beneficiary (deceased spouse or partner), which is the date the customer (reversionary) is entitled to the income stream payment Note: this date is displayed on the MS screen It can include lump sum arrears plus the regular ongoing payments Normally lump sum arrears are paid for the period from day after date of death to the date regular payments start This assessment will apply even though other income and assets are assessed at the end of the 16 week bereavement review in cases where the customer does not advise the changes before the review Waiver of debt for reversionary beneficiary. Effective from 9 May 2018: If the assessment of lump sum arrears result in a debt during the bereavement period for the surviving spouse, consideration must be given to waiver provisions contained under Class of Debt, Section 1237AB(1) of the Social Security Act 1991. See the References page for a link to the legislation All the conditions included in the legislation must be met These waiver provisions cannot be used to waive debts outside the 14 week bereavement period, or debts which occurred before 9 May 2018 If it is possible the waiver provisions can be applied, record the information on a DOC to the record. Debt Staff will make the decision New claim The Event Date will be the: date the income stream was purchased where the: customer has a partner who is current on an ISP, RCA or LIC before the purchase date, or income stream was purchased after the date of grant of the payment income stream was purchased after the lodgement of an early claim lodgement date for an early claim the start date of the 8 week assessment period for LIC payment grant date in all other cases Purchase of new income stream by an existing customer The Event Date is the purchase date of the product An additional Event Date may need to be inserted if the schedule provided is for a later date. For example: A customer purchases income stream on 1 May Schedule is issued on 15 May with a current account balance as at that date The balance at purchase, that is, purchase price, to be coded with an Event Date of 1 May and a new page to be inserted with Event Date 15 May and balance at that date
4	Code Pension/Annuities Details Variable C7 (SUPV7) screen (continued) Account Based Product field System defaults 'Y' 1 July Account Balance field Code the account balance at 1 July If purchased during the current financial year and the 1 July account balance is not available, code the purchase price The system calculates the gross income amount from this amount coded This field can only be updated once during the financial year. If an error is made and the event has been updated, delete the page and recode the product details The system will not accept zero unless there is a cancellation reason present on the SUPI screen Current Account Balance field: Code the current account balance For the August review, this amount must be the same as the 1 July Account balance If a customer seeks a reassessment at any other time and provides a current balance, only update this field 50% of this amount is assessed as an asset if section 9BA compliant Channel Type field Displays if the income stream was manually updated by Services Australia staff or auto bulk updated with data sent by the provider (ISP)
5	Code Pension/Annuities Details Variable C7 (SUPV7) screen (continued) Original Purchase Price field: Code amount originally paid for the income stream, not reduced by any commutations Code exactly as stated on the schedule (including cents if stated) If coded incorrectly, the product must be cancelled and recoded If the income stream is reversionary, the original purchase price is used For existing products, if there is a discrepancy (other than just in the cents), the product must be cancelled and recoded Commutation Date field: Code the date of the latest commutation This date is only for information and is not the date of effect Latest Commutation field: A market linked income (MLI) is generally a non-commutable income stream irrespective of if it is asset-test exempt or asset-tested, except in very limited circumstances. Determine if the commutation is allowable or not If the commutation is non-allowable, the income stream will no longer comply with section 9BA. If unsure, contact the FINS Helpdesk before updating this field. Normal escalation procedures apply. Code the most recent commutation amount Previous Commutations field: System displays total commutations made up to the current date Purchase Price - Commutations field: System displays original purchase price less total commutations made Product Category field - system displays either: 7 - Partially Asset-test Exempt Market-linked Income stream 8 - Asset-tested Market-linked Income stream Term Remaining (Years) field: System displays the number of years remaining for the income stream (rounded up to the nearest whole number) In the final year the owner can elect to have the income stream expire on the actual expiry date or the nearest 30 June to that date If the value is 1.0, the system includes in the August review mail out letter a request for details on which option the customer has selected Payment Factor field: The system displays the factor used to calculate the gross annual income amount
6	Code Pension/Annuities Details Variable C7 (SUPV7) screen (continued) Gross Annual Income Amount field Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##” go to Step 8. A manual review must be set to expire all market-linked products in the final year. Go to Step 9. If adding a Market Linked Income (MLI): Code the first 4 compulsory fields on this screen (plus the two commutation fields if needed) and select Continue The system will default the amount from the Calculated Inc amt field (1 July Account Balance/ Payment Factor). If different from the amount provided on the schedule, code the annual income from the schedule The amount must be within the allowable range as calculated by the system: Allow Min field - 90% of the amount in the Calculated Inc amt field Max field - 110% of the amount in the Calculated Inc amt field Note: as part of the Government response to COVID-19 (novel coronavirus) the minimum drawdown limits for market-linked income streams under the Superannuation Industry (Supervision) Regulations 1994 have been reduced by 50% for 2019/2020, 2020/2021, 2021/2022 and 2022/2023 financial years. This means the annual amount received during these financial years can be between 45% - 110% of the calculated income amount. Customers can reduce their gross annual income amount, subject to the reduced minimum based on the existing 1 July account balance. If the income reported on the schedule: matches the Gross Annual Income Amount field no further coding is needed is less than the Allow Min field amount code the Allow Min amount in the Gross Annual Income Amount field is between the Allow Min and Max field amounts code the amount reported on the customer's schedule in the Gross Annual Income Amount field is more than the Max field amount the income stream will no longer comply with section 9BA contact the customer or the income stream provider and advise the amount reported is incorrect tell the customer the income cannot be greater than the maximum otherwise it will lose its ATE status and no longer comply with SIS regulations ask for a new schedule with an income amount within the allowable minimum and maximum. In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows: Service Reason: customer's payment type Review Reason: select most appropriate reason Due Date: 14 days from today's date Source: INT Date of Receipt: today's date Notes: 'Income stream schedule requested. Check response and return to OB 108-05060020 for action.' Keywords: MLIEXP and AISRUPD Workgroup: leave blank Position: leave blank Transfer to Region: leave blank the review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action. If an MLI is purchased in June of any year It is to be assumed the customer has deferred payments until on or after 1 July of the next financial year If the purchase date is in June of the current financial year, the system defaults '0' in the Gross Annual Income Amount field. An edit prevents this from being changed The Calculated Inc amt, Allow Min and Max fields will display ‘0’ The amount must be updated to show the new financial year income in July or during the following August review The customer may report they are to receive a payment during June, but still code zero Tell the customer to provide the new income amount in July
7	Code Pension/Annuities Details Variable C7 (SUPV7) screen (continued) The system calculates and displays the following fields. Select Continue to return to the SUPS screen. Select the product being added to return to SUPI. Select Continue to return to SUPV. Check the following information displays: Deductible Amt (Income) field System calculates the deduction amount by which the gross income amount from an income stream is reduced to determine assessable income Term End 30 June? field: Will be hidden and protected until the final year of the product System defaults 'N'. In the final year The income stream provider will have to report in the August review if the income stream will stop at the end of the term specified in the contract or 30 June of that financial year Change 'N' to 'Y' if the income stream will stop on 30 June Calculated Inc Amt field: The system calculates this by dividing the 1 July account balance by a payment factor Payment factors are defined in the Superannuation Industry (Supervision) (SIS) Regulations and are based on the years remaining until the MLI expires No value will be displayed until the required fields for calculation have been coded Assessable Income Amount field: The system calculated amount (gross income amount - deductible amount (income)) Assessable Asset Amount field: System calculated amount If the income stream complies with section 9BA, 50% of the current account balance is an assessable asset Complete Source DOR and Action fields and select Continue
8	Market-Linked income stream (MLI) in the final year Due to a known system issue, the income calculation during the final year for MLI is not correct (NNU 12279). If the error “E022SN - The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##” is displayed, it requires the following workaround: Select the relevant income stream from the SUPS screen 'S'elect Continue to go to the SUPI screen On the SUPI screen, code: Product Cancellation Reason field 'OTH' Source and DOR as appropriate Action field - 'C' (system will not accept 'I') A warning will display, select 'Y' and continue Select 'Continue' to go to the SUPV screen Update Event Date today In the Action field, code 'I' Select Continue Code new entry on Other Assets (OAS) screen: Type: OTH Description: SUPS MLI PRN (insert product reference number) DOV: today Value: If the product is not Section 9A/B/BA compliant, code the current account balance as the value. If the product is Section 9A/B/BA compliant code half the current account balance as the value Ownership: 100% CUS Code new entry on Other Income (OINS) screen Type: OTH Description: SUPS MLI PRN (insert product reference number) Reference: leave blank DOV: today Value: code assessable income. In the final period, this is calculated by the Gross Income less the deductible which is ((purchase price - commutations) / relevant number) Frequency: ANN Once finalised, DOC the record (see Resources) and code a manual review for the expiry date. A manual review must be set to expire all market linked products. Go to Step 9.
9	Manual review to expire for Market-Linked income streams (MLI) in final year If error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##” was returned and the work around was used to code the product on OAS/OINS, a review to zero off the coding is required. In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows: Service Reason: customer's payment type Review Reason: INV (Investments/Bonds/Shares) Due Date: code DOV as advised by provider for expiry (this will be either the end of the term or closest 30/6) Source: INT Date of Receipt: today's date Notes: 'Zero OAS & OINS screen coding for SUPS MLI PRN <insert product reference number> from DOV <insert date due to expire>.' Keywords: MLIEXP and AISRUPD Workgroup: leave blank Position: leave blank Transfer to Region: leave blank The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action. If the income was accepted, a review to manually expire the income stream is required. In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows: Service Reason: customer's payment type Review Reason: INV (Investments/Bonds/Shares) Due Date: code DOV as advised by provider for expiry (this will be either the end of the term or closest 30/6) Source: INT Date of Receipt: today's date Notes: 'Expire MLI income stream PRN <insert product reference number> using cancellation reason 'EXP' from DOV <insert date due to expire>.' Keywords: MLIEXP and AISRUPD Workgroup: leave blank Position: leave blank Transfer to Region: leave blank The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action. Procedure ends here.
10	Finalise activity Check details on the SUPS screen are correct Complete the activity on the Assessment Results (AR) screen Make sure the FAL screen is checked and any review for the return of the documents completed Record details on a DOC