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Retirement phase income streams

Condition of release

Section: 16.2

To access preserved superannuation benefits as a superannuation income stream, a member must meet a relevant condition of release.

Conditions of release with nil cashing restrictions  allow superannuation benefits to be accessed as either a lump sum or income stream.

Conditions of release with nil cashing restrictions

Retirement on or after preservation age
Attaining age 65
Death
Permanent incapacity
Termination of gainful employment (restricted non-preserved only)
Terminal medical condition
Termination of gainful employment with a standard employer-sponsor of the regulated super fund on or after 1 July 1997, where the member's preserved amounts in the fund at the time of the termination are less than $200
Being a lost member who is found, and the value of whose benefit in the fund, when released, is less than $200

In addition to the conditions of release with nil cashing restrictions listed above, a superannuation income stream (with restrictions) can also be accessed under the following conditions of release:

  • Temporary incapacity - income stream must be non-commutable and cannot be funded from member financed benefits or mandated employer-financed benefits.

Practically speaking, the non-commutable income stream is generally funded from salary continuance insurance proceeds.

  • Attaining preservation age (transition to retirement) - income stream must be non-commutable and payments cannot exceed 10% of the account balance

Last modified: Wednesday, July 24, 2019