With the new super laws due to commence on 1 July 2017, now is the time to consider whether your SMSF trust deed or pension document needs to be updated.
Amendments may be required, or desirable, to:
- allow account based pensions or transition to retirement pensions (TRIPs) to be commuted in order to comply with the new transfer balance cap measures;
- nominate reversionary pensioners;
- allow the nomination of reversionary pensioners to prevail over binding death benefit nominations;
- allow TRIPs to automatically convert into account based pensions;
- enable the SMSF trustee to determine that amounts paid above the minimum pension payments be treated as a commutation;
- update the current trust deed or pension documents where they are overly proscriptive and lock in provisions relating to current laws that will be amended under the new laws; or
- update the deed where this has not been done in the last 10 years.
Although the current HA SMSF trust deed and pension documents do not require amendment to comply with the changes, we have made a number of improvements including:
- allowing a member to stipulate that their reversionary pensioner nomination is to prevail over a binding death benefit nomination;
- insert further provisions to help prevent members from exceeding their transfer balance cap;
- granting the trustee with the power to elect that amounts paid above the minimum pension payments be treated as a commutation; and
- updating the provisions relating to qualifying recognised overseas pension schemes (QROPSs).
To discuss this article, or for further information please contact: