Transition to retirement income streams moving to retirement phase $330
(PRICE INCLUDES GST)
Since 1 July 2017 it has been critical to identify the precise time a transition to retirement pension moves into retirement phase (ie, the time when the member turns 65, retires or meets another condition of release that provides full access to their superannuation). The Trustee must report the value of the pension at that precise time for transfer balance account purposes and the fund also starts to receive a tax exemption for some or all of its investment income.
Documentation is key here and Heffron has a template pack that provides the resolutions/minutes needed to record the move into retirement phase for an existing transition to retirement pension. We address the change in two parts:
- for some members, all that is required from a documentation perspective is a notification and resolution/minute to reflect the member’s change in circumstances (eg retirement), while
- for others, it is also necessary to commute an amount from the transition to retirement pension (or other retirement phase pension) to ensure the member does not exceed their personal transfer balance cap.
The order in which the above changes are made can be important and the document template pack includes technical notes to explain which documents are required and when.
This template pack can be used for all financial years from 2017/18 onwards.
There is no limit on the number of funds or members for whom these templates may be used – the pack is a tool for accountants or advisers to use in their practice as many times as they wish or for trustees to use for one or all members.
Of course, the change also requires the preparation and lodgement of a Transfer Balance Account Report. Heffron can prepare this at an additional cost should it be required.