A range of additional legislative amendments as part of the introduction of the new superannuation measures from 1 July 2017 has meant that we have recently made updates to the pension commencement documentation and in particular, the Product Disclosure Statement (PDS) that accompanies these documents within our Campus platform.
PDS for Pension Commencement
The updated PDS now reflects the following changes with the super reforms post 1 July 2017:
- Section 3.2 – this has been updated to clarify the changes from 1 July 2017 as to what counts towards the minimum pension, in particular the amendments to SISR 1.07D that excludes partial commutations from applying towards the minimum pension. Note: the ATO are to still update SMSFD 2013/2 and SMSFD 2014/1 to reflect their views and impact of this change;
- Section 4.1 – the table that outlines the various debits and credits for transfer balance cap purposes has been updated to include additional events including certain limited recourse borrowing repayments;
- Section 4.1 – a paragraph has been added to incorporate the concept of a TRIS in the retirement phase, including the requirements that must be satisfied where a condition of release with a nil cashing restriction has been met;
- Section 4.2 – additional information has now been included that details the events-based reporting requirements for SMSFs based upon the ATO’s recent finalised position.
Timing of commencement
Please note that the updated PDS will generate with any new pension commencement documents that have a start date after 30 June 2017. The previous PDS will has been retained for the time being and will generate for any pensions date prior to 1 July 2017.
You can download a sample copy of the updated pension PDS here.