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Commuting complying DB pensions | Accurium

A complying defined benefit pension is a non-commutable income stream. Generally, a member cannot commute a non-commutable income stream and pay out the benefits as a lump sum. There are limited instances when a member can commute a complying defined benefit pension and one such occasion is when the proceeds are used to commence another complying income stream.

There are only two types of complying income streams now available to members wishing to commute their complying defined benefit pensions. The two complying income streams are:

  • Complying market linked pensions (Term allocated pensions (TAP))
  • Retail complying annuities
Accurium’s webinar on commuting complying defined benefit pensions and resulting FAQs can be accessed here:

-    Webinar slides
-    FAQs

The following information sheet summarises the critical information that should be considered when commuting a complying defined benefit pension.

-    Information sheet

The following case studies explore the impact of commuting an asset test exempt complying pension on a client’s Age Pension entitlements and retirement sustainability.

-    Case study: Commuting a complying lifetime pension
-    Case study: Commuting a complying life expectancy pension  

Market linked pensions

This section provides more information on market linked pensions for those clients who wish to commute their complying pension into a market linked pension.

-    Understanding MLPs
-    MLP calculator
-    Fact sheet: The impact of the transfer balance cap on market linked (term allocated) pensions

Retail complying annuity

This section provides more information on Challenger’s complying annuity. You can obtain a complying annuity quote from adviser online or alternatively contact us for more information.

-    Guaranteed complying annuity PDS
-    Adviser Online