SMSFs to be required to have Retirement Income Strategy

SMSFs would be required to develop a Retirement Income Strategy under changes to superannuation being developed by the Government.

The Government has released a position paper on the Retirement Income Covenant, which would require super funds – including SMSFs – to develop a Retirement Income Strategy for members.

“For too long superannuation has been focused only on accumulating savings. A retirement income framework is a pivotal part of the Government’s reform agenda for superannuation – an agenda squarely focused on protecting and improving outcomes for superannuation members,” said Minister for Revenue and Financial Services Kelly O’Dwyer. Read more...

CIPR framework “neither necessary nor sufficient”

The Government’s proposed Comprehensive Income Products for Retirement (CIPR), also known as MyRetirement, framework has come under sharp criticism from the superannuation industry.

The Government has been slowly progressing the CIPR/MyRetirement framework, which follows from a recommendation in the Financial System Inquiry final report (released in late 2014), most recently with the establishment of an advisory group.

The Association of Superannuation Funds of Australia (ASFA) says CIPR is “neither necessary nor sufficient to achieve its stated objectives” as it is currently designed. Read more...

MyRetirement could lead to proliferation of unsustainable products

The Actuaries Institute, while supporting the MyRetirement framework, has warned that a ‘one size fits all’ approach could lead to the proliferation of unsustainable retirement products.

Treasury is consulting on the introduction of Comprehensive Income Products for Retirement (CIPRs), which was the term used when they were recommended by the Financial System Inquiry, also known as MyRetirement products, which is the Government’s preferred term.

The MyRetirement framework is, according to Treasury “intended to increase individuals’ standard of living in retirement, increase the range of retirement income products available, and empower trustees to provide members with an easier transition into retirement”. Read more...

Government releases “innovative” draft rules for superannuation pensions

The Government has released “innovative” draft new rules for superannuation pensions.

Minister for Revenue and Financial Services, Kelly O’Dwyer, has released the draft superannuation income stream regulations, Treasury Laws Amendment (Innovative Superannuation Income Streams) Regulations 2017, for public consultation.

Minister O’Dwyer, said the regulations, when made, will “continue the implementation of the Government’s superannuation taxation reforms”.

“These new rules will remove taxation barriers to the development of new products that will provide greater flexibility in the design of income stream products to give more choice to consumers, while ensuring income is provided throughout retirement.” Read more...

MyRetirement products (CIPR) discussion paper released

The Government has released a discussion paper on the introduction of Comprehensive Income Products for Retirement (CIPRs), or MyRetirement products – which is the Government’s favoured term.

“The Turnbull Government has today released a discussion paper exploring key policy issues to facilitate further development of a framework for the retirement phase of the superannuation system,” said Minister for Revenue and Financial Services, Kelly O’Dwyer.

It was a recommendation of the Financial System Inquiry, the final report of which was released in October 2015, that superannuation trustees be required to pre-select a CIPR for members. Read more...