An eight-step process is used to implement refreshing pension assets:
1. Member requests commutation of existing pension(s) and commencement of new pension;
2. The trustee confirms entitlement to perform these transactions and election of member to take a lump sum payment out of the fund and not additional pension payments;
3. If required, the trustee works out what the pro-rata minimum pension payment should be just before the original pension is commuted;
4. The trustee commences the new pension;
5. The trustee determines new pension’s tax-free component and pension limits;
6. The trustee issues the pension documentation;
7. If required the trustee re-segregates pension assets;
8. The trustee closes out the existing pension account, opens new pension account and adjusts the member’s accumulation interest.
