by Paul Thomson

Superannuation projections on benefit statements - Class Order 11/1227

ASIC Class Order 11/1227 enables superannuation trustees to issue benefit projections on member statements. It provides a method for estimating a member’s projected balance at retirement, and the income that this would provide in retirement. It also allows the trustee to provide an estimate of the age pension to which a member may be entitled at the time of retirement.

This paper looks at the approach to estimating superannuation benefits under Class Order 11/1227. It explores the prescribed data requirements, assumptions and methodology. It discusses groups of members who may be excluded from receiving a projection in the interest of only providing reasonable benefit estimates.

The Class Order also permits trustees to estimate a member’s age pension entitlements. This paper also looks at the age pension estimates in the Class Order: the assumptions that must be made, and some problems in the Class Order approach to estimating age pension entitlements.

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