Changes to the law allowing individuals to exit legacy retirement products and reserve provisions came into effect on 7 December 2024.
The changes enable individuals to exit a specified range of legacy retirement products for up to five years. The product can be held with any superannuation provider (APRA-regulated super fund or an SMSF).
A member can only exit an eligible legacy retirement product (subject to a fund’s trust deed) if:
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It generally commenced before 20 September 2007 or because of a conversion of an earlier legacy product that commenced before that date.
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It is a superannuation income stream product that is a:
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Lifetime pension or annuity (except if paid from a large APRA-regulated super fund that is a defined benefit fund).
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Life expectancy pension or annuity.
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Market-linked pension or annuity.
The changes also impact the treatment of allocations from reserves for the purpose of contribution caps.
See Legacy retirement product commutations and reserves for more information.
