All of the above is very fine and interesting but what is the real deal?

The real deal for pensions which commence as TRISs is as follows:

• If the SMSF has the SUPERCentral Governing Rules as its governing rules and the pension was documented using the SUPERCentral pension documents – then the pension will automatically revert to being an account-based pension on the occurrence of an unrestricted release condition – no action needs to be taken for the pension to be in retirement phase for tax purposes once it has converted.
• If the SMSF has the SUPERCentral Governing Rules as its governing rules and the pension was not documented using SUPERCentral pension documents – the SUPERCentral Governing Rules permit the Trustee and the member to vary the terms of the TRIS (by means of a suitably drafted document) to convert the pension into an account-based pension if and when an unrestricted release condition occurs.
• If the SMSF does not have the SUPERCentral Governing Rules as its governing rules then either:

a.    The TRIS pension must be stopped once an unrestricted release condition occurs and a replacement account-based pension is issued;

This response – while correct – requires paperwork, the valuation of the pension account and the replacement pension will (if Centrelink is relevant) be treated as being a post 1 January 2015 pension and so not subject to incomes test grandfathering.

b.    The TRIS pension terms are varied by an amendment deed so that the pension is converted to an account-based pension;

This response requires a deed amendment  - which means the trust deed governing the superannuation fund has to be located, has to be read and a document prepared having regard to the terms of the trust deed.  Presumably the drafting has to be undertaken by a lawyer who has some background in super and pensions.

c.    You ignore the issue and proceed merrily on.

As Sir Humphrey would say “A bold and courageous decision, Minister”.