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Transition to retirement

Allowable commutations

Section: 15.3

The income streams above are all generally non-commutable. However, cash commutations may be made in the following circumstances:

  • To pay a super contributions surcharge.
  • To pay a non-member spouse under a Family Law payment split.
  • To ensure a payment may be made under a Release Authority or Transitional Release Authority.
  • To cash an unrestricted non-preserved benefit, following a condition of release with a 'nil' cashing restriction, eg retirement or reaching age 65.

Generally, the value of a commutation is not counted towards the 10% of account balance limit for transition to retirement income payments.

Note: The last two commutation conditions generally do not apply to complying income streams, which remain non-commutable.

Last modified: Tuesday, May 2, 2017