Adding or updating a pooled lifetime income stream 108-19041857

If the customer has purchased a new income stream using funds from selling their principal home and they intend to use some or all the funds to purchase a new home, See Sale of principal home.

If the customer has supplied an income stream schedule to a service centre, upload a copy to the customer's record.

Is the customer contacting to add or update a pooled lifetime income stream?

• Yes, go to Step 3
• No, go to Step 2

Discuss all income and asset updates the customer would like to make during their contact (for example, income stream, shares, foreign income).

Only proceed if all required updates are able to be completed.

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 information required and can all updates for this contact be keyed?

• Yes, go to Step 3
• No, go to Step 4

All appropriately skill-tagged Service Officers can process new and existing lifetime income streams at the point of contact for all payment types. Do not add new pooled lifetime income streams without an income stream schedule.

What to request

Documentation:

• for new pooled lifetime income streams, a Details of income stream product (SA330) or similar schedule completed by the provider
• for partial commutations from an existing pooled lifetime income streams, a Details of income stream product (SA330) or similar schedule completed by the provider

Is the customer able to provide the required information?

• Yes, go to Step 5
• No, go to Step 4

Tell the customer all information is required before any change can be made to ensure they receive correct entitlement:

• Request all of the information they must provide. See Requesting information (CLK)
• Use Mail Forms if a form needs to be sent

Note: where the customer or partner is unable, or unwilling, to provide information due to Family and Domestic Violence (FDV), escalate to AISR support. AISR support will request the information directly from the provider.

Procedure ends here until documents returned.

Pooled lifetime income streams cannot be paid from a SMSF or SAF.

Is the income stream paid from an SMSF, or a small APRA SAF?

• Yes, see Assessing income streams paid from Self Managed Superannuation Funds (SMSFs) or Small APRA Superannuation Funds (SAFs). Procedure ends here
• No, go to Step 6

• Yes, go to Step 7
• No, see Adding or updating a lifetime income stream. Procedure ends here

If the customer or their partner is:

• providing information as part of a review, see Income stream indexation review. Procedure ends here
• advising a change to the gross income from an existing pooled lifetime income stream, go to Step 8
• advising new pooled lifetime income stream details with a purchase date on or after 1 July 2019, see Step 1 in Table 2
• advising full commutation (closure) of income stream, see Commutation of asset-tested income streams. Procedure ends here
• advising of an instalment payment, go to Step 10

Launch the Process Direct Income and Assets Update workflow. To do this access the customers record in Process Direct Customer Summary,

• Use Super Key field to navigate to screens
• Enter START into the Super Key
• Select Income and Assets Update from the Task Selector options
• Select Income Streams (SUPS/SUPI/SUPV)
• Select Start to initiate the workflow

On the Income Stream (SUPS, SUPI, SUPV) screen of income stream owner's record.

Are there details for the pooled lifetime income stream recorded?

The product type code is LPO - Lifetime pooled income stream (Non-Sup) where product is purchased with non-superannuation money or LPS - Lifetime pooled income stream (Sup) where product is purchased with superannuation money).

• Yes, go to Step 9
• No, see Step 1 in the Keying a new pooled lifetime income stream

To update:

• Expand the appropriate product from Income Streams (SUPS, SUPI, SUPV)
• check details on are correct
• On the Income Stream Details line add a new entry, check the Indexation Method

Make the necessary updates to the following fields:

• Event Date: date of change
• Gross Income Amount: new gross income amount
  Note: changes in income for pooled lifetime income stream is not dependent solely on indexation, and can vary with the returns on investment, age, life expectancy and other factors relevant to mortality. For example, income changes can be aligned to changes in the Reserve Bank of Australia (RBA) cash rate
• Income Frequency: frequency of the payment (if changed)
• Next Indexation Date: check the indexation date. If the previous indexation date is correct and the new gross income reported is following CPI indexation, advance the indexation date by 1 year
  Note: this date defaults to the anniversary of the purchase date. It is not 1 year from the event date (date of receipt of requested information) or the date when the income is updated. Where the event date of an income change is not the indexation or anniversary date, for example, the date of an arbitrary change in the RBA cash rate, or if the previous indexation date not correct, update the new date as the anniversary date. The annual reviews and updates will now generate correctly
• Click Save once updates made
• Update Receipt Date and Channel and click Save
• Click Assess
• Check the payment outcome on Entitlements (ELD) screen and click on Finish
• If the Service Officer has used the Process Direct Income and Assets workflow, Notes will prepopulate automatically and display for review when Finish is selected
• At this point any additional information can be added, as per Online Document Recorded (ODR)

Once Notes are complete, Finalise. The transaction will complete and Notes replicate to the Document List (DL).

• In Customer First check if there is an indexation review for this product on the FAL screen. Ensure it is finalised to prevent a reminder letter being sent or payment being suspended

Procedure ends here.

Do not update an existing instalment date or amount. Before the application of any increase by the current upper deeming rate, only a specialist staff member can delete the latest instalment. Instalments cannot be coded after commencement of payment.

Refer to the Level 2 Policy Helpdesk if the customer advises the existing instalments are incorrect.

To update:

• Expand the appropriate product from Income Streams (SUPS, SUPI, SUPV)
• On Pension/Annuities Instalments line select add to access the Create Pension Details options
• Instalment Date: date of the instalment payment, as stated on the schedule or advised by the customer. If assessment day is more than 12 months from the purchase date, or any instalment date, the instalment is automatically increased by the current upper deeming rate on each instalment amount’s anniversary date until the assessment date
• Amount: amount of the instalment. Each instalment is increased by the current upper deeming rate on the anniversary of each payment until the assessment date. The screen will list all the compounded instalment amounts
• Event Date: the system will auto-update this field for the instalment date, and compounding upon each anniversary and the assessment date
• Click Save once updates made
• Update Receipt Date and Channel and click Save
• Click Assess
• Check the payment outcome on Entitlements (ELD) screen and click on Finish
• If the Service Officer has used the Process Direct Income and Assets workflow, Notes will prepopulate automatically and display for review when Finish is selected
• At this point any more information can be added, as per Online Document Recorded (ODR).

Once Notes are complete, Finalise. The transaction will complete and Notes replicate to the Document List (DL).

Procedure ends here.

Has the customer or partner supplied a Details of income stream product (SA330) or similar schedule providing details for each income stream?

• Yes, see Step 1 in Table 2
• No, request an SA330 or tell the customer to provide a similar schedule issued by their provider, see Requesting information (CLK):
• use Mail Forms if a form needs to be sent
• the customer must provide an income stream schedule for each income stream they own
• tell the customer the SA330 form must be completed by the income stream provider for income streams purchased from a retail provider
• procedure ends here until documents are received

The Income and Assets Update Task Selector (START) in Process Direct can be used to update Income Streams.

Launch the Process Direct Income and Assets Update workflow. To do this access the customers record in Process Direct Customer Summary,

• Use Super Key field to navigate to screens
• Enter START into the Super Key
• Select Income and Assets Update from the Task Selector options
• Select Income Streams (SUPS/SUPI/SUPV)
• Select Start to initiate the workflow

Select add to access Create Income Streams (SUPS/SUPI/SUPV) options.

Code the Income Stream Details:

• Product Type Code: LPO (Lifetime pooled income stream purchased with non-superannuation money) or LPS (Lifetime pooled income stream purchased with superannuation money)
• Income stream from SMSF/SAF?: leave blank, Self-Managed Superannuation Funds (SMSFs) or small APRA superannuation funds (SAFs) are not able to offer these pooled lifetime products
• Provider or SMSF/SAF Name: name of financial institution or name of SMSF or SAF. Do not code names of financial planners and accountants
• Provider or SMSF/SAF ABN: the fund's Australian Business Number (ABN)
• Product Name: key name of the income stream product as stated on the schedule. For joint income streams, include the term ‘jointly owned’ to identify the product as a jointly owned income stream
• Product Reference Number: code the product reference number exactly 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
• Event Date/Commencement Date: commencement date of the income stream as stated on the schedule. This may vary from the purchase date where the payments from the income stream have been deferred from the date of purchase
• Purchase Date: purchase date of the income stream as stated on the schedule
• Term or Relevant Number: the relevant number as stated on the schedule based on the customer’s life expectancy rounded down to the nearest year, as at the assessment day. For reversionary income streams, this is the life expectancy determined on the Assessment Date of the original beneficiary. For joint products, it is the life expectancy of the eldest of the joint beneficiaries

• Product Cancellation Reason: leave blank when adding a new income stream
• Assessment Date: display-only field. The system calculates the date as the Purchase Date if over 65 for LPS, or Age Pension age for LPO, or the earlier of the Commencement Date or reaching 65, or Age Pension age
• Threshold Date: display-only field. The date is the later of the day before the customer’s 84th birthday, or 5 years from the assessment day. For reversionary income streams, this is the Threshold Date determined on the assessment date of the original primary beneficiary

• Event Date: when adding a new LPS or LPO income stream, the Event Date will default to the purchase date of the product. An additional event date may have to be inserted for any change after the purchase date, for example, for deferred payments already commenced
• Channel Type: the system displays whether the income stream was manually updated by Services Australia staff or auto bulk updated with data sent by the provider (ISP)
• Gross Income Amount: use the amount and frequency specified on the schedule; do not convert to an annual amount. For joint income streams, multiply the amount shown on the schedule by the percentage held by the customer. If commencement of payments has been deferred, key the income amount as zero at the initial Event Date of the purchase date
• Income Frequency: select the frequency of payment from the dropdown list

• Initial Purchase Price: amount initially paid for the income stream (not reduced by any commutations). This is the amount of the first (and possibly only) instalment paid, or the sum of all instalments paid on that same day. This amount can be keyed with or without cents. If keyed incorrectly, cancel the product and rekey. For joint income streams, multiply the amount shown on the schedule by the percentage held by the customer
• Assessable Income Amount: the system calculates and displays the assessable income amount which can be either of the following:
• If purchased with non-superannuation monies (LPO), the purchase price less any commutations is considered a financial asset and subject to deeming until the assessment day
• From assessment day, 60% of the gross income amount for either product purchased with superannuation (LPS) and non-superannuation (LPO) monies
• Assessable Asset Amount field: the system calculates and displays the assessable asset amount when purchased with any of the following:
• non-superannuation monies (LPO) before assessment day. The assessable amount is 100% of the purchase price less any commutations and the balance is increased annually based on upper deeming rate
• superannuation monies (LPS) before assessment day, there is NIL asset assessable
• either superannuation or non-superannuation monies on/after assessment day. The assessable amount is the greater of 60% of the purchase price less any commutations
  OR 100% of the surrender value or 100% of the death benefits if either is above the Capital Asset Schedule (CAS) limits
• either superannuation or non-superannuation monies after the Threshold Day. The assessable amount is the greater of 30% of the purchase price less any commutations
  OR 100% of the surrender value
  OR 100% of the death benefit if either is above the CAS limits
• Commutation Date: the date of the latest commutation. This date is only for information and is not the date of effect
• Latest Commutation: the most recent commutation amount
• Purchase Price less Commutations: the system displays initial purchase price plus the value from Instalment Total field less total commutations (latest commutation plus previous commutations made
• Previous Commutations: the system displays total commutations coded previously
• Product Category: after the update is saved the system displays either:
• Asset-Tested Income Stream (Lifetime)
  LPS – Lifetime pooled income stream (SUP) will always be assessed as Category 10
  LPO – Lifetime pooled income stream (Non-SUP) will be assessed as Category 10 on or after the assessment date
• Asset-tested Deemed Income Stream (Lifetime)
  LPO - LPO - Lifetime pooled income stream (Non-SUP) will be assessed as Category 11 prior to the assessment date

• Indexation Method: if the schedule indicates payment is not indexed, leave Indexation Method, Next Indexation Date and Indexation % fields blank.
  Note: changes in income for pooled lifetime income stream is not dependent solely on indexation of the previous payment. Payment can vary with the returns on investment, age, life expectancy and other factors relevant to mortality. For example, income could be aligned to vary with the Reserve Bank of Australia (RBA) cash rate
• if payment varies, indexation details must be keyed for a review of the gross income:
• If 'FIX - Indexed by a fixed % on a fixed date' is selected, the system will auto increase the income amount by the percentage keyed in the Indexation % field on the date specified in the Next Indexation Date field
• If 'CPI - Consumer Price Index' is selected, the system will send a letter to the income stream owner on the date specified in the Next Indexation Date field requesting their new gross income and frequency of payment. Where payment is variable for any factors other than fixed indexation, ‘CPI’ is to be keyed
• Next Indexation Date: date as stated on the income stream schedule
  Note: where not otherwise stated in the schedule, or the date on the schedule is in the past, key the next anniversary of the purchase date. This ensures an annual review is generated by the system and updated each year. This field must be keyed with the next future review date when adding the income stream with an indexation method. When multiple updates are required with different Event Dates, only the last entry requires a 'Next Indexation Date' entry to be coded. For example, when coding historical information
• Indexation Percent: only code if the Indexation Method field is FIX
• Original Surrender value: the surrender value for the product on the product’s assessment day as advised on the income stream schedule. Code zero if the schedule states the surrender value is zero. Leave this field blank if the product has not reached its assessment date
• Surrender Value: if the income stream schedule indicates the surrender value is more than the amount allowed under SIS Regulations Capital Access Schedule, key this field with the amount stated
• Death Benefit: if the income stream schedule indicates the death benefit value is more than the amount allowed under SIS Regulations Capital Access Schedule, key this field with the amount stated

The Pension/Annuities Instalment Details only needs to be updated if the customer purchased the income stream via instalments.

• Instalment Date: the date of the instalment payment, as stated on the schedule or advised by the customer. If the assessment day is more than 12 months from the purchase date, or any instalment date, the instalment is automatically increased by the current upper deeming rate on each instalment amount’s anniversary date until the assessment date
• Amount: amount of each instalment. Each instalment increases by the current upper deeming rate on the anniversary of each payment until the assessment date. The screen will list all the compounded instalment amounts
• Event Date: the system will auto update this field for the instalment date, and compound on each anniversary and assessment date
• Channel Type: the system will auto update this field with the source of data update. CSO for any instalment entered by a Service Officer, IDX for automatic compounding on the anniversary and ASS for pro-rata compounding upon assessment day

• Check the Income Streams (SUPS, SUPI, SUPV) displays the updated income stream details
• Click Assess
• Check the payment outcome on Entitlements (ELD) screen and click on Finish
• If the Service Officer has used the Process Direct Income and Assets workflow, Notes will prepopulate automatically and display for review when Finish is selected
• At this point any more information can be added, as per Online Document Recorded (ODR)
• Once Notes are complete, Finalise. The transaction will complete and Notes replicate to the Document List (DL).

If required, ensure FAL screen is checked in Customer First and any review for the return of the documentation completed.

If the customer has purchased a new income stream using funds from selling their principal home and they intend to use some or all the funds to purchase a new home, See Sale of principal home.

If the customer has supplied an income stream schedule to a service centre, upload a copy to the customer's record.

Is the customer contacting to add or update a pooled lifetime income stream?

• Yes, go to Step 3
• No, go to Step 2

Discuss all income and assets updates the customer would like to make during their contact (for example, income stream, shares, foreign income).

Only proceed if all required updates are able to be completed.

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 information required and can all updates for this contact be keyed?

• Yes, go to Step 3
• No, go to Step 4

All appropriately skill-tagged Service Officers can process new and existing lifetime income streams at the point of contact for all payment types. Do not add new pooled lifetime income streams without an income stream schedule.

What to request

Documentation:

• for new pooled lifetime income streams, a Details of income stream product (SA330) or similar schedule completed by the provider
• for partial commutations from an existing pooled lifetime income streams, a Details of income stream product (SA330) or similar schedule completed by the provider

Is the customer able to provide the required information?

• Yes, go to Step 5
• No, go to Step 4

Tell the customer all information is required before any change can be made to ensure they receive correct entitlement:

• Request all of the information they must provide. See Requesting information (CLK)
• Use Mail Forms if a form needs to be sent

Note: where the customer or partner is unable, or unwilling, to provide information due to Family and Domestic Violence (FDV), escalate to AISR support. AISR support will request the information directly from the provider.

Procedure ends here until documents returned.

Pooled lifetime income streams cannot be paid from an SMSF or SAF.

Is the income stream paid from an SMSF, or a small APRA SAF?

• Yes, see Assessing income streams paid from Self Managed Superannuation Funds (SMSFs) or Small APRA Superannuation Funds (SAFs). Procedure ends here
• No, go to Step 6

• Yes, go to Step 7
• No, see Adding or updating a lifetime income stream. Procedure ends here

If the customer or their partner is:

• providing information as part of a review, see Income stream indexation review. Procedure ends here
• advising a change to the gross income from an existing pooled lifetime income stream, go to Step 8
• advising new pooled lifetime income stream details with a purchase date on or after 1 July 2019, see Step 1 in Table 2
• advising full commutation (closure) of income stream, see Commutation of asset-tested income streams. Procedure ends here
• advising of an instalment payment, go to Step 10

Go to the Pension/Annuities Summary (SUPS) screen of income stream owner's record.

Are there details for the pooled lifetime income stream recorded?

The product type code is LPO (Lifetime pooled income stream (Non-Sup)) where product is purchased with non-superannuation money or LPS (Lifetime pooled income stream (Sup)) where product is purchased with superannuation money).

• Yes, go to Step 9
• No, see Step 1 in Table 2

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 (SUPV10) screen, check the Indexation Method. Make the necessary changes to the following fields:
• Event Date: date of change
• Gross Income: new gross income amount
  Note: changes in income for pooled lifetime income stream is not dependent solely on indexation, and can vary with the returns on investment, age, life expectancy and other factors relevant to mortality. For example, income changes can be aligned to changes in the Reserve Bank of Australia (RBA) cash rate
• Income Frequency: frequency of the payment (if changed)
• Next Indexation Date: check the indexation date. If the previous indexation date is correct and the new gross income reported is following CPI indexation, advance the indexation date by 1 year
  Note: this date defaults to the anniversary of the purchase date. It is not 1 year from the event date (date of receipt of requested information) or the date when the income is updated. Where the event date of an income change is not the indexation or anniversary date, for example, the date of an arbitrary change in the RBA cash rate, or if the previous indexation date not correct, update the new date as the anniversary date. The annual reviews and updates will now generate correctly
• Source, DOR and Action, code details
• select Continue
• check the SUPS screen displays the updated income stream details
• complete the activity on the Assessment Results (AR) screen
• check if there is an indexation review for this product on the FAL screen. Ensure it is finalised to prevent a reminder letter being sent or payment being suspended
• record details on a DOC

Procedure ends here.

Do not update an existing instalment date or amount. Before the application of any increase by the current upper deeming rate, only a specialist staff member can delete the latest instalment. Instalments cannot be coded after commencement of payment.

Refer to the Level 2 Policy Helpdesk if the customer advises the existing instalments are incorrect.

To update manually, go to the SUPSINS screen by keying ‘Y’ in the Instalment Ind field on the SUPV10 screen. In the following fields:

• Instalment Date: the date of the instalment payment, as stated on the schedule or advised by the customer. If assessment day is more than 12 months from the purchase date, or any instalment date, the instalment is automatically increased by the current upper deeming rate on each instalment amount’s anniversary date until the assessment date
• Amount: the amount of the instalment. Each instalment is increased by the current upper deeming rate on the anniversary of each payment until the assessment date. The screen will list all the compounded instalment amounts
• Event Date: the system will auto-update this field for the instalment date, and compounding upon each anniversary and the assessment date
• Channel Type: the system will auto-update this field with CSO for any instalment keyed by a Service Officer

Procedure ends here.

Has the customer or partner supplied a Details of income stream product (SA330) or similar schedule providing details for each income stream?

• Yes, see Step 1 in Table 2
• No, request an SA330 or tell the customer to provide a similar schedule issued by their provider, see Requesting information (CLK):
• use Mail Forms if a form needs to be sent
• tell the customer the SA330 form must be completed by the income stream provider for income streams purchased from a retail provider
• procedure ends here until documents are received

Use the Income Stream Update guided procedure. Note: manual coding will be needed in some cases. The guided procedure cannot be used where:

• more than 1 Event Date is needed. For example, additional Event Date(s) need to be inserted for changes after the purchase date, for example, for deferred commencement of payment
• there are more than 6 instalments
• the income stream is reversionary and, during the update, a return to the SUPI screen will be needed to override the calculated Threshold Date

To update manually, go to the Pension/Annuities Identification (SUPI) screen. Complete the following fields:

• Product Type Code: LPO (Lifetime pooled income stream purchased with non-superannuation money) or LPS (Lifetime pooled income stream purchased with superannuation money)
• Income stream from SMSF/SAF?: leave blank, Self-Managed Superannuation Funds (SMSFs) or small APRA superannuation fund (SAFs) are not able to offer these pooled lifetime products
• Provider or SMSF/SAF Name: name of financial institution. Do not key names of financial planners and accountants
• Provider or SMSF/SAF ABN: the fund's Australian Business Number (ABN)
• Product Name: name of the income stream product as stated on the schedule. For joint income streams, include the term ‘jointly owned’ to identify the product as a jointly owned income stream
• Product Reference Number: code the product reference number, exactly 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
• Purchase Date: purchase date of the income stream as stated on the schedule
• Commencement Date: commencement date of the income stream as stated on the schedule. This may vary from the purchase date where the payments from the income stream have been deferred from the date of purchase
• Term or Relevant Number: relevant number as stated on the schedule based on the customer’s life expectancy rounded down to the nearest year, as at the assessment day. For reversionary income stream, this is the life expectancy determined on the Assessment Date of the original beneficiary. For joint products, it the life expectancy of the eldest of the joint beneficiaries

• Section 9A/B/BA Compliant Indicator: leave blank, pooled lifetime income streams are not assessed under section 9A/B/BA
• Start Date Original Commuted Product: leave blank
• Product Cancellation Reason: leave blank when adding a new income stream
• Assessment Date: display-only field. The system calculates the date as the Purchase Date if over 65 for LPS, or Age Pension age for LPO, or the earlier of the Commencement Date or reaching 65, or Age Pension age
• Threshold Date: display-only field. The date is the later of the day before the customer’s 84th birthday, or 5 years from the assessment day. If a reversionary income stream, this is the Threshold Date determined on the assessment date of the original primary beneficiary
• Source: DOR: and Action: key details and select Continue

• Event Date: when adding a new LPS or LPO income stream, the Event Date will default to the purchase date of the product. An additional event date may have to be inserted for any change after the purchase date, for example, for deferred payments already commenced
• Channel Type: the system displays whether the income stream was manually updated by Services Australia staff or auto bulk updated with data sent by the provider (ISP)
• Product Category: the system displays either:
• 10 = Asset-Tested Income Stream (Lifetime)
  LPS – Lifetime pooled income stream (SUP) will always be assessed as Category 10.
  LPO – Lifetime pooled income stream (Non-SUP) will be assessed as Category 10 on or after the assessment date
• 11 = Asset-tested Deemed Income Stream (Lifetime)
  LPO - LPO - Lifetime pooled income stream (Non-SUP) will be assessed as Category 11 prior to the assessment date

• Gross Income Amount: the amount and frequency specified on the schedule - do not convert to an annual amount. For joint income streams, multiply the amount shown on the schedule by the percentage held by the customer. If commencement of payments has been deferred, key the income amount as zero at the initial Event Date of the purchase date
• Income Frequency: frequency of payment
• Instalment Ind: Y or N or blank. If customer has purchased the product using instalments use Y. Keying a Y navigates to the SUPINS screen where each instalment can be added
• Initial Purchase Price: the amount initially paid for the income stream (not reduced by any commutations). This is the amount of the first (and possibly only) instalment paid, or the sum of all instalments paid on that same day. This amount can be keyed with or without cents. If keyed incorrectly, cancel the product and rekey. For joint income streams, multiply the amount shown on the schedule by the percentage held by the customer
• Instalment Total: display-only field, generated from the SUPINS screen. The amount is the total of all the instalments and increases with each indexation and keying on the SUPINS screen
• Commutation Date: date of the latest commutation. This date is only for information and is not the date of effect
• Latest Commutation: the most recent commutation amount
• Prev Commutations: the system displays total commutations previously coded
• Purch Price – Commutations: the system displays initial purchase price plus the value from Instalment Total less total commutations (latest commutation plus previous commutations made)

• Indexation Method: if the schedule indicates payment is not indexed, leave Indexation Method, Next Indexation Date and Indexation % fields blank.
  Note: changes in income for pooled lifetime income stream is not dependent solely on indexation of the previous payment. Payment can vary with the returns on investment, age, life expectancy and other factors relevant to mortality. For example, income could be aligned to vary with the Reserve Bank of Australia (RBA) cash rate
• If payment varies, indexation details must be keyed for a review of the gross income:
• If 'FIX'ed is keyed, the system will auto increase the income amount by the percentage keyed in the Indexation % field on the date specified in the Next Indexation Date field
• If 'CPI' is keyed, the system will send a letter to the income stream owner on the date specified in the Next Indexation Date field requesting their new gross income and frequency of payment. Where payment is variable for any factors other than fixed indexation, ‘CPI’ is to be keyed
• Next Indexation Date: date as stated on the income stream schedule
  Note: where not otherwise stated in the schedule, or the date on the schedule is in the past, key the next anniversary of the purchase date. This ensures an annual review is generated by the system and updated each year. This field must be keyed with the next future review date when adding the income stream with an indexation method. When multiple updates are required with different Event Dates, only the last entry requires a 'Next Indexation Date' entry to be coded. For example, when coding historical information
• Indexation %: only code if the Indexation Method field is FIX
• Original Surrender value: surrender value for the product on the product’s assessment day as advised on the income stream schedule. Key zero if the schedule states the surrender value is zero. Leave this field blank if the product has not reached its assessment date
• Surrender Value: if the income stream schedule indicates the surrender value is more than the amount allowed under SIS Regulations Capital Access Schedule, key this field with the amount stated
• Death Benefit: if the income stream schedule indicates the death benefit value is more than the amount allowed under SIS Regulations Capital Access Schedule, key this field with the amount stated
• Assessable Income Amount: the system calculates and displays the assessable income amount which can be either of the following:
• If purchased with non-superannuation monies (LPO), the purchase price less any commutations is considered a financial asset and subject to deeming until the assessment day
• From assessment day, 60% of the gross income amount for either product purchased with superannuation (LPS) and non-superannuation (LPO) monies
• Assessable Asset Amount: the system calculates and displays the assessable asset amount when purchased with any of the following:
• non-superannuation monies (LPO) before assessment day. The assessable amount is 100% of the purchase price less any commutations and the balance is increased annually based on upper deeming rate
• superannuation monies (LPS) before assessment day, there is NIL assets assessable
• either superannuation or non-superannuation monies on/after assessment day. The assessable amount is the greater of 60% of the purchase price less any commutations
  OR 100% of the surrender value or 100% of the death benefits if either is above the Capital Asset Schedule (CAS) limits
• either superannuation or non-superannuation monies after the Threshold Day. The assessable amount is the greater of 30% of the purchase price less any commutations
  OR 100% of the surrender value
  OR 100% of the death benefit if either is above the CAS limits
• Source, DOR and Action: key details
• select Continue

If the Instalment Indicator field is keyed as Y on the SUPV10 screen, the screen will go to the SUPSINS screen to allow entry of instalments. Any increased instalment amounts prior to assessment day will display:

• Instalment Date: date of the instalment payment, as stated on the schedule or advised by the customer. If the assessment day is more than 12 months from the purchase date, or any instalment date, the instalment is automatically increased by the current upper deeming rate on each instalment amount’s anniversary date until the assessment date
• Amount: amount of each instalment. Each instalment increases by the current upper deeming rate on the anniversary of each payment until the assessment date. The screen will list all the compounded instalment amounts
• Event Date: the system will auto update this field for the instalment date, and compound on each anniversary and assessment date
• Channel Type: the system will auto update this field with the source of data update. CSO for any instalment entered by a Service Officer, IDX for automatic compounding on the anniversary and ASS for pro-rata compounding upon assessment day

To finalise the activity:

• check details on the SUPS screen are correct
• joint income streams owned by the customer and partner must be recorded separately on both records
• complete the activity on the Assessment Results (AR) screen
• ensure FAL screen is checked and any review for the return of the documentation completed, and
• record details on a DOC