Since the introduction of the new superannuation rules that apply from 1 July 2017, there have been technical issues with transition to retirement income streams (TRIS). For examples, see our earlier publication TRIS and the new amendments to the 2016 Budget measures.
The most recent concern has been whether a pension that starts as a TRIS can automatically continue after the death of the original pensioner to someone who has not satisfied a full cashing condition (such as turning 65, or the retirement, terminal illness or permanent incapacity conditions of release), even if the original pensioner had. For example, if Malcolm commenced a TRIS and then turned 65, his pension could not continue to his wife Lucy after he died unless she had also satisfied a full cashing condition.
This quirk of the legislation has now been resolved, and a pension that started as a TRIS can continue to a reversionary beneficiary even where the reversionary beneficiary has not satisfied an unconditional condition of release. These amendments are contained in the Treasury Laws Amendment (2018 Measures No. 4) Bill 2018, which was passed by both houses of Parliament on 12 February 2018.