What Counts for the Pro-Rata Payment Requirements?

A lump sum paid from a pension interest will be counted in determining whether the pension interest has satisfied the pro-rata minimum payment requirement before a commutation payment can be made.

However, a lump sum payment from a pension interest which is rolled back into accumulation/taxable phase will not qualify for this purpose.

While the Draft Ruling does not consider the issue, the same result should happen if the lump sum is simply rolled over to another fund.

If roll backs and rollovers from pension interests were counted as satisfying the pro-rata minimum pension requirement, it would be a simple matter to retain a super interest in pension/exempt phase by simply rolling back or rolling over pension and to commence a new pension from the rolled back or rolled over interest without ever making a pension payment.