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Transition to retirement

Transfer balance cap

Section: 15.9

This section is a summary of how the transfer balance cap applies to TTR income streams (excluding death benefit reversionary TTR income streams).

Transfer balance account credits for TTR income streams

A TTR income stream does not count towards a member's transfer balance account until the time that it becomes a retirement phase income stream (see section 17.6 for information about when a TTR income stream becomes a retirement phase income stream).

TTR income stream was already a retirement phase income stream prior to 1 July 2017

Where a TTR income stream was already a retirement phase income stream prior to 1 July 2017, its balance on 30 June 2017 is a transfer balance account credit on 1 July 2017.

TTR income stream becomes a retirement phase income stream on or after 1 July 2017

Where a TTR income stream becomes a retirement phase income stream on or after 1 July 2017, its account balance on the day it becomes a retirement phase income stream is a transfer balance account credit on that same day.

Transfer balance account debits for TTR income streams

The commutation of a TTR income stream that has not yet become a retirement phase income stream is not a transfer balance account debit.

Transfer balance account debits that may arise in relation to a TTR income stream that is a retirement phase income stream are the same as transfer balance account debits for account based pensions. See section 16.6 for further information.

Last modified: Wednesday, July 24, 2019