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Well 31 December 2005 has now been set as the final date. So if a member of a SMSF is eligible to be paid a defined benefit pension their entitlement must arise and the payment terms agreed by 31 December 2005. You can see the criteria about who is eligible here:
http://www.ato.gov.au/super/content.asp?doc=/Content/45333.htm
While the government restricted SMSF pension choices with one hand, it increased them with the other. Now SMSF members can enjoy new "transition to retirement (non-commutable) pensions". These can also be paid by non SMSF superannuation funds.
So SMSF members can now choose to receive an allocated pension or term allocated pension (market-linked pension) as a transition to retirement pension.
Qualifications: BA, LLB, Deakin University
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