The ATO has released an explanatory note Death benefit income streams – meeting minimum pension payment requirements to clarify what is required on death. Unfortunately it is confusing in that it misses a couple of rather important items.

Pension minimum requirements in the year of death are only applied to reversionary pensions. Non-reversionary pensions are exempt from the minimum pension requirements.

Also, in the year of death, the reversionary pension minimum does not alter. The minimum is recalculated based on the reversionary beneficiary’s age in the next year.

Though the explanatory note does not contradict this. It’s failure to mention it is misleading.