I have completed a partial commutation for a member, and the annual minimum pension paid amount has not decreased. Why is this?
Processing a partial commutation does not update the minimum pension payment amount in Simple Fund 360.
From 1 July 2017, as per the extract below, the ATO guidelines indicates that partial commutations no longer count towards the annual minimum pension payment amount. Where the commutation is only partial, trustees must ensure the minimum amount is paid before commutation, or that sufficient assets remain to meet the minimum pension payment standards for that year, based on the original value of the income stream at the start of the year.