A transition to retirement income stream will move into the retirement phase when the member meets a Nil cashing restrictions condition of release, such as retirement or attaining the age of 65.
The TRIS will not cease upon being moved into retirement phase and all benefits will become unrestricted non-preserved benefits, and will no longer be subject to the maximum annual pension payment limit. The TRIS will generally have the characteristic of a retirement phase account-based superannuation income stream.
Upon moving into retirement phase for the TRIS, the SMSF is required to determine the value of the TRIS account balance at that date, and report the amount as the member's transfer balance cap amount. The earnings from assets supporting the TRIS will be eligible for exempt current pension income.
Alternatively, a member may request for the TRIS to be commuted to accumulation, and immediately re-commence a retirement phase superannuation income stream.
The details
A TRIS will move into the retirement phase when the member meets one of the following conditions of release:
A TRIS will move automatically into the retirement phase as soon as the member reaches age 65, or if the superannuation income stream starts to be paid to a reversionary beneficiary after the member's death. For the other conditions of release listed above, the member needs to notify their super provider for the TRIS to move into the retirement phase. In these cases the superannuation income stream will move into the retirement phase at the time the SMSF is notified.
A member does not need to commute and restart a pension/ income stream account for it to move into the retirement phase.
Source: ATO GN 2019/1
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