Which preservation components does Simple Fund 360 allocate profit and tax to members?
The create entries process will allocate profit and tax to the various preservation components as follows:
Member in accumulation phase
- If the age of the member is less than 65 years then profit and tax will be allocated to the preserved component of that member's balance
- If the age of the member is 65 or greater, as they have satisfied conditions profit and tax will be allocated to the unrestricted non-preserved component.
Member in pension phase
- Regardless of the member's age or type of income stream, if the member account has been set up as a transition to retirement, then profit and tax will be posted to the preserved component.
- However, if it is NOT set up as a transition to retirement then profit and tax will be allocated to the unrestricted non-preserved component, regardless of the member’s age.
The preservation components are able to be adjusted by using the Update Member Components tool.