Do You Need an Actuarial Certificate for Your SMSF?

Managing a self-managed superannuation fund is not always an easy task. This is especially so during those uncertain financial times. In such instances, you will need the help of an expert to help you in dealing with the highs and lows of this industry so that you can take the right measures with regards to your funds. This will help you make an overall positive difference on your nest egg. When it comes to the management of SMSF, one of the main questions that many grapple with is whether they will need an actuarial certificate for that purpose.

There are situations in SMS management where an actuarial certificate will be required and there are those situations where it is not required. For example, in a case where the fund is an accumulation over one year, you will not require an Exempt Current Pension Income (ECPI) and in such case, you will not need an Actuarial Certificate. Another instance where you will not require an actuarial certificate is where all your funds are in pension for one year. This is because in this case, all your funds will be in ECPI.

If the funds are operated on a segregated basis, you will also not need an actuarial certificate in this instance. Then there are the situations where you will actually need the best actuarial certificate to be delivered as soon as possible. These include the following:

· There is an unsegregated fund that has been in accumulation for some part of the year and which has also been in pension for the remaining part of the year. Instances of this include the single member fund that generally starts the pension for a period in the year and thus is converted to pension.

· A member of an unsegregated fund is in both accumulation and pension simultaneously. As an illustration, you could have a member with a pension at the beginning of the year, then getting a contribution and after that, convert the contribution towards a pension within a short period of time. Visit Act2 Solutions.

· You have a two-member unsegregated fund where one of the members is in accumulation while the other member is in pension.

In all these instances, the services of an actuary will be required in determining the relative percentage that were in pension and accumulation after averaging the funds across the year. As a result, you will need to get actuarial certificate as it will be a requirement.

There are certain instances where one may choose not to get the certificate. This is generally a situation where the cost of obtaining it far outweighs the advantages that you will get by obtaining it. This can be the case where the Exempt Current Income Percentage is very little, there are few assets or the earnings from your investments are very minimal or even negative.

Whenever you need it, it is important to contract a professional and experienced actuary service that will assist you with the preparation of the certificate to assist you with compliance requirements. There are companies that specialize in the preparations of these actuarial calculations along with the accompanying certificates for the SMSFs with both pension and accumulation accounts. With a professional service by your side, you can have these prepared accurately and promptly even within the same day in order to assist you with full compliance.

Filed under: Advertising & Marketing

Leave a Reply