Review of income stream products with a residual capital value 110-02060040

Fixed term income streams commonly pay part of the investment back at the end of the fixed term. There are two types of fixed term income streams - fixed term pensions and fixed term annuities. The return of capital to the income stream recipient at the end of the term is known as RCV. This amount will be specified in the contract. Not all fixed term income streams have an RCV. The repayment can be as high as 100% of the original investment or the income stream recipient may choose to have none, that is, 0% of their investment returned at the end of the fixed term.

If the income stream product held by the customer or their partner has an RCV amount greater than zero recorded, the system will send a letter to the customer on the expiry of the product term. The letter requests details of what the customer has done with the money received at the end of the term. If the customer invests the money, they are asked to provide details of the new investment. If the customer purchased an income stream product with the money, they are asked to provide an income stream schedule issued by the product provider. The product details, that is, the product type, product provider name, product reference number and the RCV amount are listed on the letter and is based on product information available on the customer's or their partner's Centrelink record.

An STX (super term expired) review creates in Customer First and displays on the Future Activity List (FAL) screen. This review cannot be completed online.

Customers and/or their partners have 21 days from the date of issue of the letter to provide Services Australia with the details. The system will send a reminder letter 28 days from the date of issue of the original letter if there has been no response. If the customer or their partner does not respond to the reminder letter within 28 days, the system will suspend their payment. Their payment will cancel a further 13 weeks from the suspension where there has been no reply or updates made.