| Description | Softcopy * |
|---|---|
| Legacy pension commutation | $1,250 |
| * Additional fees for hardcopy documents apply. Click here for more information Price includes GST |
|
Overview
We offer a suite of documentation to fully commute certain types of legacy pensions, including complying lifetime pensions (CLPs), life expectancy pensions (LEPs) and market linked pensions (MLPs) based on the amnesty provisions in the Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024 (Cth).
The documents we provide allow for the full commutation of an existing legacy pension specified above for one member of an SMSF within the prescribed 5-year amnesty period (7 December 2024 – 6 December 2029). Our suite of commutation documents complies with relevant law and best practice for the commutation of legacy pensions.
The commuted amount can be rolled back into accumulation phase or cashed outside the superannuation environment as a lump sum payment based on the instructions provided to us.
Naturally, additional documentation will be required if the member wishes to commence a new account-based pension, subject to their transfer balance cap (TBC) capacity.
(We can also provide other services and documentation in relation to legacy pensions, including in relation to restructuring legacy pensions outside the amnesty.)
What’s included
We prepare the following for legacy pension commutations:
- Covering letter
- Member request
- Trustee resolutions
- Letter from Trustee to Member
- Confirming Trustee Resolutions (for subsequent use if the figures have changed from those reflected in the initial trustee resolutions)
The above fee includes lawyer review of the current governing rules of the SMSF to determine whether the trustee is empowered to commute the relevant pension. Naturally, a deed update will be required in some instances, and we would be pleased to assist if so instructed. More information on our SMSF deed update service can be found here.
Additional considerations
The above fee does not include advice or other attendances associated with the commutation. Accordingly, we recommend that a member contemplating exiting a legacy pension considers the need to obtain additional advice and input where relevant, including in relation to the following:
- actuarial input, where relevant, on the commutation value of the pension;
- superannuation law advice on the succession planning implications of commuting a legacy pension and other associated changes to their super entitlements;
- tax advice on the commutation, including TBC advice covering whether a member can commence a new account-based pension or whether an excess TBC position may arise;
- it is also recommended that advice on whether prior debits and credits associated with the pension (and related transfer balance report events) have been correctly recorded;
- advice, if applicable, on the social security implications of the commutation (ie, in respect of Centrelink or the Department of Veteran Affairs), or the Commonwealth Seniors Health Card, including with regard to the recent debit waiver legislative instrument (see Social Security (Waiver of Debts – Legacy Product Conversions) Specification 2025);
- financial advice from a licensed financial planner under the Corporations Act 2001 (Cth); and
- any other items to consider including making sure the right documents are completed.
Naturally, DBA lawyers would be pleased to assist with providing advice if so requested.
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