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TRIS Pension and 60 year old test

Initiate

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Replies 1

We have an individual who want an employee per their own company.

They wound up the business on 30 June 2019.

They continued to do the same work as a sole trader from 1 July 2019.

 

This person currently has a TRIS pension.  Are they able to convert the cease pension to an Account Based Pension on 1/7/2019 as they ceased employment whilst they are over 60 (but under 65)

 

Or does the person need to continue the TRIS as they continued the same work but only changed structures?

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 0

Hi @MDA78

 

Thanks for your post.

 

Great question. If a member who is 60 or over gives up one employment arrangement but continues in another employment relationship or work scenario, they may

  • cash all benefits accumulated up to that time
  • not cash any preserved or restricted non-preserved benefits accumulated after that condition of release occurs – these benefits can't be cashed until a fresh condition of release occurs.

 

You can find this information about the retirement condition of release in the SMSF section of our website. This information also applies to members of APRA regulated super providers.

 

Once you meet a condition of release with nil cashing restrictions, e.g. retirement, you can stop the transition to retirement income stream (TRIS) and access your super through a different income stream or a lump sum.

 

The trustee (or trustees) of the super fund must be satisfied that the condition of release has been met. If this scenario pertains to a member of a SMSF and you would like further guidance, you can make a request for self-managed superannuation fund specific advice. If it doesn't involve a SMSF, we recommend that you speak with the relevant super provider.

 

Hope this helps.

 

Thanks, Chris

1 REPLY 1

Most helpful response

Community Moderator

Replies 0

Hi @MDA78

 

Thanks for your post.

 

Great question. If a member who is 60 or over gives up one employment arrangement but continues in another employment relationship or work scenario, they may

  • cash all benefits accumulated up to that time
  • not cash any preserved or restricted non-preserved benefits accumulated after that condition of release occurs – these benefits can't be cashed until a fresh condition of release occurs.

 

You can find this information about the retirement condition of release in the SMSF section of our website. This information also applies to members of APRA regulated super providers.

 

Once you meet a condition of release with nil cashing restrictions, e.g. retirement, you can stop the transition to retirement income stream (TRIS) and access your super through a different income stream or a lump sum.

 

The trustee (or trustees) of the super fund must be satisfied that the condition of release has been met. If this scenario pertains to a member of a SMSF and you would like further guidance, you can make a request for self-managed superannuation fund specific advice. If it doesn't involve a SMSF, we recommend that you speak with the relevant super provider.

 

Hope this helps.

 

Thanks, Chris