Retirees alarmed as they prepare for super reforms

By George Cochrane
Updated June 18 2017 - 12:23am, first published June 15 2017 - 12:49pm

I have a CSS defined benefit superannuation pension of about $70,000 a year plus a self-managed super fund balance of about $800,000 and my wife has a defined benefit PSS pension of $40,000 and $1.2 million in the SMSF. The assets, shares and bank accounts, are "segregated" i.e. separately listed as assets in either my wife's or my pension accounts. My wife and I will both be individually above the $1.6 million cap. On June 30, I was intending to partially commute both of our pension accounts and transfer some parcels of shares into an accumulation account so that we are under the $1.6 million cap. I will also open new bank accounts for the accumulation fund. I believe the pension account would continue to be tax free and tax would be payable in the accumulation account. I assume there would be no need for an actuary. Is this correct? M.G.

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