Archive for October, 2011

Actuarial certificate – Exempt Current Pension Income (ECPI).

October 31, 2011

A Self managed super fund can claim exemption from paying tax on income from those assets (pension assets) which are supporting an income stream, such as account based pension being paid to a member of the fund. This income is called the Exempt Current Pension Income (ECPI). If pension paying assets are segregated from non-pension paying assets then there is no need to obtain an actuarial certificate. Sometimes, some of the pension assets are segregated and the remaining pension assets are mixed with non-pension assets. For example one bank account is set aside for a pensioner, in this situation actuarial certificate is required only for assets that are un-segregated (mixed) and segregated assets are not included in the calculation as all income of the segregated assets is 100% tax exempt.

A self managed super fund requires an actuarial certificate for each year when the pension assets are un-segregated