Excess minimum pension payment strategy

Apply this strategy to maximise super capital to which tax exemption applies and generate transfer balance debits

$110.00 - FAQ paper | licence fee

This comprehensive strategy ensures that any payment from a superannuation fund for a member who is in retirement phase which is made after the minimum payment requirement has been satisfied is to be treated as:

(a) if the member has an accumulation account – as a payment from the accumulation account; or

(b) if the member has no accumulation account (either because they never had one or the accumulation account has been exhausted by previous withdrawals) or there are insufficient funds in the accumulation amount – as a partial commutation of the pension (to the extent that the amount could not be paid from the accumulation account).

What is the benefit of the Strategy if there is no further super capital?

The Strategy is not a “magic pudding” which prevents the reduction in the pension account. However, it does generate transfer balance debits which create “transfer balance cap space” for the member.

Having transfer balance cap space is useful if there is a possibility of moving further capital into the super system.

This paper provides answers questions such as:

• examples of options that can be used for this strategy
• what the benefit of the strategy if there is no further super capital
• what if the member has both pension and accumulation accounts
• and minimum payment requirements;
• and more

Please note:  This online order form provides a complete set of documents for one member only.  To place an order for a different member, please submit a new set of instructions.

For assistance please call the SUPERCentral Help Desk on 02 8296 6266 or make an enquiry.