Under the current Superannuation Industry (Supervision) Act (SIS) legislation trustee members are able to establish a pension if they meet the eligibility criteria to commence a Pension income stream from their SMSF. There are specific criteria that must be met in relation to both Transition to Retirement and Account Based Pensions.
If a trustee has reached preservation age, a transition to retirement pension can be commenced and enables them to receive an income stream from their fund. Preset Super will generally establish the pension without cost. The eligibility criteria age is between 55 and 64 years of age. They must be working to meet the ongoing eligibility criteria.
When the member meets a condition of release and has retired, they are eligible to commence an account based pension. Again there are eligibility criteria and a minimum level of pension drawdown that must be met. To learn more about the eligibility criteria for both Transition to Retirement and Account Based Pensions click here.