PENSION CERTIFICATES

PENSION CERTIFICATES

As part of our actuarial services we offer to prepare Pension Certificates - required by some pensions that are fixed and are payed annually - in order to claim specific tax exemptions.

PENSION CERTIFICATES

Actuarial Services – Pensions Certificates

As part of our actuarial services we offer to prepare Pension Certificates – required by some pensions that are fixed and are payed annually – in order to claim specific tax exemptions. Self Managed Super Funds (SMSFs) that pay pensions may be required to obtain Actuarial certificates that include a valuation of pension assets for either of the following reasons:

  • Tax exemption (as per the Income Tax 1997 Section 295-390 )
  • Determines the portion of the fund’s income from assets that qualifies for exemption from tax;
  • Required for all pensions (with the exception of segregated, allocated pensions) where benefits are paid annually or more frequently.
  • Adequacy (as per the Superannuation Industry Supervision Regulations 1994)
  • Determines whether there is a “high degree of probability that the fund will be able to pay the pension as required under the fund’s governing rules”;
  • Required for all complying pensions.

Request Form for Pension Certificates

Please note that we have a request form which should be completed in order for us to prepare an Actuarial Pension Certificate. They are designed in a format which should replace most of the paperwork that is usually sent for the certificate to be completed. Please follow the instructions carefully on the request form.
All pension certificates issued by Allen L Truslove, Actuary & Statistician cover the financial year period from 1 July to 30 June of the subsequent year.
Allen L Truslove, Actuary & Statistician Pty Ltd neither pays nor receives commissions or referral fees for any business referred by or to any outside source.

Allocated pension / Account Based / Market-Linked Pension

Income Tax Act 1997 Section 295-390 (3) Actuarial Certificate
Cost – $160 (Inc GST)

Defined Benefits Complying / Non-Complying Pensions

Income Tax Act 1997 Section 295-385 Actuarial Certificate
Income Tax Act 1997 Section 295-390(3) Actuarial Certificate
Cost – $450 (Inc GST)

Data Request Form

Download our data request form for pension certificates below
Request Form
If you would like assistance whiles completing our data request form,
Please feel free to contact us on 03 9097 1650

Complying (Defined Benefit) Pensions

Complying pensions are pensions where the payments are made at least annually and the size of payments are fixed, subject only to specific variation. In addition, complying pensions must satisfy one of the following:

  • Lifetime pensions – Pensions payable throughout the lifetime of the primary beneficiary (or a reversionary beneficiary, if any); or
  • Life expectancy pensions – Pensions payable for a term equal to the beneficiary’s life expectancy with payments subject to variation only in accordance with prescribed indexation limits or to pay the superannuation contribution surcharge; or
  • Term certain pensions – Pensions payable for a term no less that 15 years and no greater than the beneficiary’s life expectancy with payments subject to variation only in accordance with prescribed indexation limits or to pay the superannuation contribution surcharge.

Actuarial certificates are required for the above pensions for the following purposes.

  • Income Tax 1997 Section 295-390 Actuarial Certificate in respect of assets supporting current pension liabilities.
  • Superannuation Industry Supervision Regulation 9.29(b). This requires an actuarial investigation and valuation at the date that the fund became a defined benefit fund and annually thereafter.
  • Superannuation Industry Supervision Regulations 9.31(1)(ba). This requires a statement of the actuary’s opinion on whether, at the valuation date, there is a high degree of probability that the fund will be able to pay the pension as required under the fund’s governing rules.
  • Allocated and Market-Linked Pensions

Actuarial certificates are required each year for the purposes of Income Tax 1997 Section 295-390 in respect of unsegregated assets (ie funds that have unsegregated superannuation liabilities) supporting current pension liabilities. Our actuarial services ensure that all complying pensions, within existing self managed super funds are issued with actuarial certificates.
From the 2004/05 year onwards, funds providing allocated pension or market linked pensions only, using the segregated pension assets basis, are not required to obtain an actuarial certificate in order to claim a tax exemption.

Further Information