In some cases, rounding has been applied to eliminate cents and simplify the calculations.
Holly is a member and trustee of the Holly SMSF. On 1 August 2023, Holly dies while in receipt of a non-reversionary retirement phase superannuation income stream valued at $1,180,000.
Holly's super interest will be divided 50-50 to Holly's two children, Ruby and Bertha.
On 1 October 2023, the fund receives an insurance policy payment of $800,000. At this date, the retirement phase interest was valued at $1,200,000 due to investment growth.
On 1 February 2024, the entire amount is rolled over to another fund to be paid to the children. At this date, the interest in total is valued at $2,200,000, due to further investment growth.
When calculating the retirement phase value to be included on the death benefit rollover message in SuperStream, the fund needs to identify the ‘at-death’ value of the retirement phase interest, plus all investment earnings attributable to it.
The ‘at-death value’ was $1,180,000. The $20,000 earnings between 1 August and 1 October are included. When the insurance policy is included into the account, the retirement phase interest (and earnings) represents 60% of the total of the account ($1,200,000 ÷ $2,000,000 × 100).
Therefore, 60% of the earnings between 1 October and 1 February are included in the retirement phase value: 60% of $200,000 = $120,000.
The retirement phase value to be reported on the death benefit rollover statement is: $1,180,000 + $20,000 + $120,000 = $1,320,000.
Using SuperStream to report a dependent child death benefit rollover:
Death benefit rollover to a child recipient require both the Death Benefit Rollover SuperStream message and the Death Benefit Rollover Statement form to be sent to the receiving fund.
The transferring fund is required to undertake the rollover in SuperStream and must, as soon as practicable after processing the rollover, complete the DBS and send this to the receiving fund.
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