A refresher course on self-managed super fund pensions

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.