SMSF Pension Commutation Kit

Effectively record the commutation of an SMSF pension prior to 1 July 2017. You can choose to commute an account-based pension or transition to retirement account-based pension in whole or in part.

Where you are unable to determine the exact amount of your pension account at the date of the commutation, you may select to commute such amount which will ensure your transfer balance is in line with your transfer balance cap. Note that this option can only be used by a person in relation to one pension which is being paid to them.
$ POA

Are you can advisor who needs help managing members' transfer balances? Contact Cleardocs on 1300 307 343 for help creating all the documents you need to record the commutation of your SMSF pension and either:

  • transfer the pension assets back into the member's accumulation account; or
  • transfer the pension assets out of super as a lump sum cash payment to the member.

This document package can be used if:

  • a member is requesting the commutation; or
  • the trustee received a commutation authority from the ATO and is required to effect a commutation of a pension to bring the transfer balance account in line with the transfer balance cap.

Time taken to complete 5 minutes.

Legal Sign-offThe master documents are written in plain language and are signed-off by our lawyers at Maddocks.

What documents are included in the Cleardocs Kit?

The Cleardocs Kit includes:

  • member's request for pension commutation;
  • trustee's notification of pension commutation;
  • minutes or resolutions of the trustee(s) or director(s) of the corporate trustee (as needed by your particular SMSF); and
  • an Establishment Kit explaining what to do next.

When does the commutation take effect?

When you create the documents, you can choose for the commutation to take effect immediately or you can nominate a specific date.

The fund does not require a Cleardocs deed or a Cleardocs pension

To use the Cleardocs Pension Commutation Kit, the SMSF does not require a Cleardocs deed or existing Cleardocs pension documents.

We recommend that you consider updating to the latest version of the Cleardocs deed to ensure the fund's rules permit the member to commute their pension — you can update the SMSF's deed to a Cleardocs deed for $154.00.

Does the member need to be available to sign the documents?

Yes, the Cleardocs Kit assumes the member has consented to the commutation and is available to sign the documents.

Seek legal advice

The SMSF Pension Commutation information here should be considered general in nature, and in no way interpreted as legal advice. You must always seek your own independent legal, accounting and financial advice about your particular situation. The summary on this page is for information purposes only.

Questions or further information

If you have questions:

  • about how to use Cleardocs, contact the Cleardocs helpline on 1300 307 343.
  • about legal issues, contact the Cleardocs helpline on 1300 307 343. If you need advice, we will arrange for you to speak with a lawyer at Maddocks. The firm provides a free legal helpline in relation to the documents Cleardocs provides. If you require other legal advice in relation to your particular circumstances, then this will be charged for.