Retirement phase income streams
Condition of release
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|
|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