With the new super laws commencing from 1 July 2017, advisors and trustees of self managed superannuation funds (SMSFs) are starting to consider whether they need to update their SMSF trust deed or their pension documents.

Many deeds and pension documents will not require amendment. However, amendments could be required, or desirable, in the following circumstances:

• To allow account based pensions or transition retirement income streams to be commuted in order to comply with the transfer balance cap measures
• To nominate reversionary pensioners
• To allow the nomination of reversionary pensioners to prevail over binding death benefit nominations
• To allow transition to retirement income streams to automatically convert into account based pensions
• To grant the power to elect that amounts paid above the minimum pension payments be treated as a commutation
• To update the current trust deed or pension documents where they are overly proscriptive and lock in provisions relating to current laws that will be amended under the new laws
• Where the deed has not been updated in the last 10 years

Although the current Sladen Legal SMSF trust deed and pension documents are sufficient for the new laws, we have made a number of improvements including:

• Provisions allowing a member to stipulate that their reversionary pensioner nomination is to prevail over a binding death benefit nomination
• Provisions designed to help prevent members from exceeding their transfer balance cap
• The power to elect that amounts paid above the minimum pension payments be treated as a commutation
• An updated QROPS provision

To discuss this article, or for further information please contact:

Phil Broderick
Principal
Sladen Legal
T +61 3 9611 0163  l M +61 419 512 801  
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia
E: pbroderick@sladen.com.au

Melissa Colaluca
Associate  
Sladen Legal                                                                
T +61 3 9611 0161
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia  
E: mcolaluca@sladen.com.au