As previously noted, the Transfer Balance Cap will increase from July 1st this year. Following on from this, and the unwieldy system of calculating the individual TBC for existing superannuation pensioners, I have been approached to consider strategies which will allow existing pensioners to receive the full $100k increase.
Unfortunately, once a member has registered a transfer balance account, the highest balance that has been registered is the balance that will be used to determine their proportionate increase.
The transfer balance cap is not affected by commutations, fraud or divorce, though these items may reduce the balance of the member’s transfer balance account.
Even if 100% of the pension is commuted prior to 1 July, the member’s transfer balance cap will not be affected. Sure, the member may commence a new pension from 1 July but their cap, and its indexation, will not have been affected by the commutation.
