SMSF LEGACY PENSIONS & RESERVES

We’ve built a smarter range of documents to convert from smsf legacy pensions and fund reserves.

New regulations commenced from 7 December 2024 to allow for the conversion of SMSF legacy pensions – complying lifetime, life expectancy (fixed term) and market linked pensions which can be commuted for up to a 5 year exit period. In addition, the regulations provide for a permanent change to the allocation of existing SMSF reserves, now allowing for much larger allocations to be made to fund members.

Smarter SMSF was involved in the Treasury discussions about these new regulations, which estimates around 17,000 SMSF members holding these types of pensions.

There are a number of important factors that need to be considered as part of the exit of these legacy retirement products. Our specialist knowledge at Smarter SMSF has enabled us to develop a range of specialist documents to enable the exit of these superannuation income streams and fund reserves.

In this complex area of SMSF legacy pensions, we’ve built a smarter way to work with you and your clients to exit these retirement products.

Please note that Smarter SMSF does not provide any financial product advice in respect to any legacy pension commutation or allocation of a reserve amounts to a fund member.

Watch our ‘feeling smarter’ video, where Tim Miller and Aaron Dunn discuss the impact of the new regulations.

Upcoming webinar

  • Wednesday, 5 February 2025 at 12:00pm

Join Aaron Dunn & Tim Miller for this upcoming free webinar as together they discuss the impact of these legacy pension conversion measures and what needs to be considered with from a timing, social security, tax and estate planning perspective.

The session will also explore the suite of documents that Smarter SMSF has created for the exit of these legacy retirement products and fund reserves.

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Available documents

The following documents are available as part of the Smarter SMSF legacy pension document suite:

  • Market Linked Pension commutation
  • Lifetime complying pension commutation
  • Fixed-term / life-expectancy complying pension commutation
  • Flexi-pension (LT non-complying) commutation
  • Reserve allocations to members (in accordance with new SIS & tax laws)

As part of the available documents, Smarter SMSF has created a range of fact sheets and calculators to assist in managing the commutation and reserve allocation process.

Smarter Legal Review

The Smarter Legal Review can provide legal support and advice in respect to the fund’s trust deed and any existing pension documentation to enable the commutation of any SMSF legacy pension or the ability to transfer from reserves.

The ability to commute what was a previously non-commutable superannuation income stream requires a number of important steps to be considered within the fund’s current & previous trust deeds that enabled the pension to be paid, along with the relevant pension documentation that originally established the legacy pension product.

Our legal service, along with fund documents provides you with the confidence that any changes to these legacy products will comply with the relevant tax and super laws.

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Recent Posts

Dec102024

A christmas gift for legacy SMSF pensioners

As an early Christmas present and unexpected result for the Industry, Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024 were registered on the Federal Register of Legislation on 6 December 2024.  In a nutshell it allows for the conversion of SMSF legacy pensions – complying lifetime, life expectancy (fixed term) and market…

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Sep172024

Draft regulations released for SMSF legacy pension conversions

The recently released Exposure Draft of Treasury Laws Amendment Instrument 2024 – SMSFs – legacy retirement product conversions and reserves marks a significant shift in how legacy retirement products are managed within the self-managed superannuation fund (SMSF) sector. Specifically, the regulations relax commutation restrictions on certain superannuation income streams and allow for more flexible management…

Details

Have any specific questions about an SMSF legacy pension or reserve amount?

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