Using the Actuarial Percentage to determine the portion of the current year share of income or loss to attributable to the pension account(s)
Using the Actuarial Percentage to determine the portion of the current year share of income or loss to attributable to the pension account(s)
SuperFund uses the allocated Actuarial Percentage to determine the portion of the current year share of income or loss tthat is attributed to the pension account(s).
If there is just one member and the fund is totally in pension mode, the actuarial percentage will be set at 100%, with the total share of income or loss being attributed to the pension. If not, an actuary will usually supply the percentage, as this calculation can be difficult, as it has to consider factors such as the date(s) the portion of the fund went into pension mode, the asset(s)or portion(s) thereof that are in pension mode ect.
In the example below, the Actuary has advised us that 60% of the fund is in pension mode.
- From the Fund menu, click Actuary Percentage, complate and click OK.
The program will allocate the pension first, based on the actuary percentage and then split the remaining share of the income or loss, according to the Members Allocation, if no allocation is made, the program will make the split according to their opening balances, and if the pension was only established in the current year the allocation could be lopsided.
During the course of the year, the fund generated $10,000 interest on its bank account.
The Tax Reconciliation report shows the $10,000, accounting profit, then deducts the 60% of $10,000, as Exempt Pension Income so that tax is only charged on the amounts attributable to the accumulation accounts.
The Members allocation Worksheet now needs to be completed.
- From the Members menu, click Members Allocation.
- In the "Members Allocation" window, click Worksheet.
- The "Members Worsheet" window is completed by allocating the amounts as below:
Program and version
SuperFund, all versions