The ADD NEW PAYMENT facility enables you to easily enter payments of pensions and benefits and other transfers out of Member accounts.
Note that payments can only be made from Member accounts, not from the Fund itself, since any pension or benefit payment or transfer out will automatically reduce the balance of a member's account.
To enter a payment, click the EXPENSES tab.
If you have PAYMENTS entered already, Mclowd™displays a list of PAYMENTS entered in the selected period.
If you select Entire Fund in the Account selection box on the right (above the Financial Year selection), Mclowd™will display payments made to all Members.
To add a new payment, click the ADD NEW PAYMENT button.
In the Payment made on behalf of field, select the Member to or on behalf of whom the payment was made.
Payments can only be made on behalf of Member accounts. The payment will reduce both the Member's account balance and the bank balance.
Mclowd™displays:
Mclowd™permits pension payments only to member accounts in pension mode.
If you attempt to make a pension payment to an accumulation account, Mclowd™will display an error message.
Mclowd™ correctly allows benefit payments from accumulation accounts, but users should verify under what circumstances a benefit payment is permissible to such members. Under law, a benefit can be paid if one or more conditions of release are satisfied. For example, if the member has reached the age of 65, is over 60 and has ceased employment (even if they intend to return to work), or has reached their preservation age and retired. Benefits may also be payable under certain circumstances on compassionate grounds or if the member is suffering disability or incapacity. Benefits can also be paid from accumulation accounts to non-residents who leave Australia and to beneficiaries on the death of a member, and in certain other specific circumstances. Trustees of self-managed superannuation funds should carefully verify that a Condition of Release has been satisfied before making a benefit payment. (Refer Member Account Conversion: Conditions of Release)
Transfers out are permitted for members in accumulation mode to provide for transfers of member funds to another superannuation fund if members request it.
Click ADD PAYMENT to save the record.
Mclowd™will verify that sufficient funds exist in the member account to make the payment. An error message will advise if the balance in the Member account is insufficient to make the payment.
