About the SMSF - Revert to Accumulation Phase

This kit provides you with all the formalities to transition from the Pension Phase back to Accumulation Phase. It is fully compliant with 1 July 2007 Commonwealth legislation being the "Plan to Simplify and Streamline Superannuation". It is prepared by Gretchen Alt-Cooper of The Gain Group Pty Ltd, and signed off by Brett Davies Lawyers.

The kit contains:
1) A letter to the Trustee, directing them to stop paying your pension and to start accumulation again;
2) Minutes of the Trustee’s meeting to be signed by the Trustee, accepting your application to being the accumulation phase again; and
3) A fully compliant Product Disclosure Statement (PDS).

Why do I need a new PDS?
Superannuation legislation requires that the “issuer” of a “financial product” (which includes a “superannuation interest”) provides new members with a Product Disclosure Statement (PDS). This is meant to assist the member decide whether to use the product. In a SMSF, the “issuer” is the Trustee of the SMSF. The PDS must be provided “at or before” the time the member decides to use the product.

Moving from pension phase to accumulation phase within a SMSF is issuing a new “superannuation interest”. Therefore, the Trustees need to provide the member changing back to accumulation phase with a PDS. This sets out the significant benefits, risks, features and costs relating to the superannuation interest.

The advantage of having a PDS is that it clearly and simply shows:
1) what the member’s benefits are;
2) what restrictions there are on accessing those benefits; and
3) what happens when the member dies.
This information is more easily accessed through a PDS than through reading the Trust Deed in conjunction with the superannuation legislation.

I’ve built this kit. What do I do now?
1) Read your new PDS;
2) Read and sign your letter to the Trustee;
3) Post this letter to the Trustee;
4) Ensure that the Trustee signs the Minutes of the Trustee meeting; and
5) Keep all of this information together with your SMSF documentation.