What is the Process of Converting an Allocated Pension to an Accounts Based Pension?

Upgrade the Deed, Roll Back the Existing Pension and Commence a New Account Based Pension.

The process for the change from an allocated pension to an ABP is as follows:

1. Upgrade the deed: You can find this document when logging into your account and clicking on the Document Wizard in Templates / SMSF Establish, Maintain & Upgrade / Standard SMSF and Documentation and Minutes folder or simply search SMSF Deed of Variation.

2. Roll back the existing allocated pension: You can find this document when logging into your account and clicking on the Document Wizard in Templates / SMSF Income Streams / SMSF Income Streams folder or simply search Account Based Pension Rollback .

3. Commence a new account based pension:  You can find this document when logging into your account and clicking on the Document Wizard in Templates / SMSF Income Streams / SMSF Income Streams folder or simply search Account Based Pension.

It will not impact the TBAR as the rollback amount creates a debit to the TBAR and assuming the new pension has the same amount then it will be the same credit - which is the new TBAR.

Please be advised this is general information only, and is not to be taken as legal advice. If you would like more information, or have a legal query, please contact Abbott & Mourly directly.
Reviewed: 17/01/2024