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

The system issues review letters on the expiry of the product term if the income stream product has an RCV amount greater than zero. The review activity (Super Term Expired review) appears on the Future Activity List (FAL) screen and the review reason is 'STX'.

Note: STX reviews can only be actioned in Customer First.

Customers are required to advise what they have 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 they used the money to purchase a new income stream product, the customer is asked to provide an income stream schedule issued by the product provider. If the RCV amount is less than $5,000, evidence of what was done with the funds is not required.

• All reviews returned to the agency or a service centre are scanned onto the customer’s record for processing. Payment is suspended FSS - No reply to income stream review, or FRC - Fail to reply to correspondence (check suspension DOC), go to Step 2
• Review letter has been returned, go to Step 4
• Customer contacts to provide the details of the review in person or over the phone, go to Step 5

28 days after the system sends the initial review letter to a customer, a reminder letter issues where there has been no update or reply.

The system automatically suspends the customer's payment FSS (No reply to income stream review) after 28 days from the date of issue of the reminder letter if there has been no update or reply to the reminder.

Note: payments can be manually suspended FRC (Fail to reply to correspondence) if they have not responded to the review or the reminder letter. See Cancellation, suspension and rejection reason codes for Age Pension.

The customer’s payment can be restored using the Benefit Action (BA) screen if the customer has provided all the information and/or documents needed. For example, customer has advised where the proceeds of the income stream have been invested or used.

Can the customer’s payment be restored and income stream updated?

• Yes, go to Step 3
• No:
• Advise the customer to provide the information required for the review including a schedule if a new income stream has been purchased
• Create a review for the return of the requested information within 14 days. Record details of the customer contact on a DOC
• Procedure ends here

An activity to cancel the customer's payments 13 weeks after the date of suspension will be on the Future Activity List (FAL) screen. Leave the activity on FAL, as when the review becomes due the system will check the customer is current. If they are, the activity will automatically cancel.

The customer's payment will need to be restored first using the Benefit Actions (BA) screen. Once this has been coded, take the restore activity to AR but do not finalise it. Manually code any updates in the same activity.

Go to Step 7.

Has the customer provided the full details required? For example, where the proceeds of the income stream have been invested or used.

• Yes, go to Step 6
• No, contact the customer to obtain the full details
• If the customer is unable to provide the full details verbally
• place the review activity on hold
• Request the information. See Requesting information (CLK)
• Record details of the customer contact on a DOC
• Procedure ends here

Customers are required to advise what they have 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 they used the money to purchase a new income stream product, the customer is asked to provide an income stream schedule issued by the product provider. Note: details of a new income stream cannot be accepted over the phone, an income stream schedule is required.

Is the customer able to provide full details for the review?

• Yes, go to Step 6
• No, advise the customer to provide the information required for the review including a schedule if a new income stream has been purchased
• Place the review activity on hold
• To request the information, see Requesting information (CLK)
• Record details of the customer contact on a DOC
• Procedure ends here

• Select the income stream review (STX) from the FAL screen. This will transfer it to the AL screen
• If the form was scanned, view the scanned image on Document Tools in Customer First. Note: if the form is scanned, the review activity will be on the AL screen
• Select the activity on the AL screen. The SUPS screen will display
• Go to Step 8

• Select the income stream review (STX) from the FAL screen. This will transfer it to the AL screen
• If the form was scanned, view the scanned image on Document Tools in Customer First. Note: if the form is scanned, the review activity may be on the AL screen
• Select the activity on the AL screen. The SUPS screen will display
• Go to the BA screen and restore the customers payment. Take the restore activity to AR but do not finalise it. See Restoration of payments (CLK) for more information
• Go to the SUPS screen
• Go to Step 8

From the SUPS screen:

• Select the appropriate line and the Pension/Annuities Identification (SUPI) screen will display. Check correct product selected

On the SUPI screen update:

• Product Cancellation Reason: field - code 'EXP'
• Source: and DOR: fields - the date the customer provided the information
• Code 'C' in the Action: field (system will not accept 'I')

Go to the SUPV screen. The system will automatically set the relevant fields to zero. Update the following fields:

• Event Date: field
• if the customer has purchased a new income stream with the funds, the event date is the date of purchase of the new income stream. This includes where a gap exists from the expiry date the initial income stream was commuted. This will avoid gaps and make sure of continuity in the assessment of the income and asset values
• where the funds were transferred to another asset for example, a bank account, use the date the funds were received into the account, as the end date of the income stream to avoid duplication or gaps of any income/asset values
• where the previously recorded balance is less than $5,000, and bank balances or other asset updates have not been provided, code the expiry date (anniversary date, 30 June or other date as indicated in response to the expiry review)
• Action: field - code 'I'

Note: if there is more than one income stream product, repeat this step for each of them.

Has the customer provided information about a new investment or income stream product?

• Yes, go to Step 10
• No, go to Step 11

Complete all other updates as required. See Coding income and assets for Centrelink payments and services for more information.

Go to Step 11.

To finalise the activity:

• Check the new income stream details on the SUPS screen is correct
• Joint income streams owned by the customer and partner must be updated separately on both records within the same activity
• Complete the activity on the Assessment Results (AR) screen
• Record details on a DOC
• Procedure ends here