Q: I am keen to understand how to move one member of an SMSF from accumulation phase to a benefit paying phase, while the remaining members continue in the accumulation phase. So, my specific questions are:
- Does the ATO need to be informed of the changed status of the member going from accumulation to benefit paying phase? If so, how is the fund to inform the ATO?
- I have seen literature that suggests that actuarial certificate is required to achieve (1). Why is this the case and what will the certificate cover?
- What other parties need to be informed of the change in the members status?
A: Let me have a look at some of the important issues that we need to think about here. It's probably no doubt what I'll say first - always check the specific rules of your fund. You said you had an SMSF, you're looking to start a pension. So please check your trust deed for any specific rules or any specific requirements that apply to you. I'll give you an example of that. A deed that I looked at not long ago required that the request from the member to start a pension be signed off on or be ratified, be agreed to by a majority of the fund trustees. I don't know why that wording was in this particular deed, but what it said was we couldn't necessarily have a pension started unless the majority of the trustees said you can. Just look for those sorts of things, any specific requirements.
