When a member meets a condition of release, they become eligible to commence a pension using some or all of their superannuation balance. The pension establishes an income stream for the member, with a minimum payment requirement each financial year.
Prior to the commencement of any income stream, the fund’s trust deed must be reviewed to ensure that it allows the commencement of the type of pension requested by the member. Some older deeds may not provide for recent changes to legislation and may prohibit types of income streams that are otherwise now permissible by legislation. If necessary, trustees can amend the trust deed of the fund to allow for all permitted pension types to be paid from their super fund.
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