TRIS questions are top adviser queries in September quarter: BT

Share this article:

Questions about Transition to Retirement Income Streams (TRIS) strategies were the top adviser queries in the September quarter, according to BT Advice Technical.

The top query was around people aged 60 and over with multiple employment arrangements retiring and the potential impact on TRISs.

BT says that since APRA updated Superannuation Prudential Practice Guide SPG 280: Payment Standards in June advisers have had additional clarity around when people aged 60+ with multiple jobs can access their preserved superannuation benefits.

“While nothing has specifically changed in this area from a legislative point of view, the APRA guidance paper certainly reinforces the rules around employment arrangements and conditions of release,” said BT Technical Consultant Tim Howard.

BT said APRA confirmed that when a member who has reached age 60 and has two or more gainful employment arrangements they would meet the retirement condition of release if they ceased either arrangement.

“Given the recent changes to the tax treatment of the earning on assets supporting transition to retirement income streams (TRIS), it is now even more important to consider whether a member can start a retirement phase pension, such as an account-based pension, or convert their existing TRIS into an ABP,” said Mr Howard.

The second highest query was around how TRISs with a reversionary beneficiary can validly pass to a nominated beneficiary on death.

“Parts of the new super laws and supporting commentary from the ATO point to the reversionary beneficiary themselves needing to satisfy a condition of release at the time of the original member’s death,” said Mr Howard.

“While this is creating a degree of uncertainty from an estate planning point of view, a number of industry participants are currently seeking further clarification on the issue.”

Want to be kept up-to-date with SMSF and Superannuation changes, why not subscribe to our Newsletter?

This article, as with all content on this site, is for informational purposes only, and is not legal, financial, tax or other advice. Please read our Terms and Conditions of Use.

Share this article:

Leave a comment

Your email address will not be published. Required fields are marked *