The SMSF Pensions
The SMSF pensions
The pensions starting after 19 September 2007 should fulfil the recent minimum pension criterion.
The recent minimum standards signify that the SMSF pensions you pay should fulfil the following conditions:
* The pension should be account-based, except in certain situations.
* You should pay at least a minimum amount yearly.
* You are not allowed to add to the funds that supports the pension by contributions or rollover amounts after the pension has begun.
* The pension can only be handed over to one of the dependents if the member expires.
* You are not allowed to employ the monetary value of the pension or the earnings from it as security for borrowing.
* Before commuting a pension, you should pay a minimum amount in limited situations.
The new pensions has no maximum draw down limits apart from shifting to retirement earning flows.
The pension can be paid to one of the members dependents only when the member expires. The dependent can be one of the following:
An existing spouse or de facto spouse
An offspring of the departed whose age is less than 18 years
An offspring of the departed age between 18 years and 25 years and monetarily dependent on the departed
An offspring of the departed who is 18 years old or more having a permanent disability
Any individual who was dependent on the deceased for monetary allowance during his death, or
Any individual who stayed with the departed and shared a personal relationship where one or both of them gave financial and domestic support and personal care.
