TRIS tops adviser query list

Transition to retirement income streams strategies remain a priority for financial advisers according BT Financial Group.

The BTFG Advice Technical division said in its September quarter round-up the business found the top two queries made by financial advisers were: APRA guidance around retirement for people aged 60 and over including a potential impact on transition to retirement income streams (TRIS); and TRIS with a reversionary nomination.

"While nothing has specifically changed in this area from a legislative point of view, the APRA guidance paper certainly reinforces the rules around employment arrangements and conditions of release," BTFG technical consultant Tim Howard said.

FS ADVICE: TRIS and the state of play

In June, APRA updated the Superannuation Prudential Practice Guide SPG 280 to give financial advisers additional clarity around when clients aged 60 and over, with multiple employment arrangements, may access their preserved super benefits.

The regulator confirmed when a member who has two or more gainful employment arrangements has reached age 60 they will meet a retirement condition of release if they were to cease any one of these arrangements.

"Given the recent changes to the tax treatment of the earning on assets supporting TRIS, it is now even more important to consider whether a member can start a retirement phase pension, such as an account-based pension, or convert their existing TRIS into an ABP," Howard said.

The second most topical query confirms the widespread confusion around TRIS, with questions surrounding whether a reversionary beneficiary can validly pass to the nominated beneficiary after death.

"Parts of the new super laws and supporting commentary from the ATO point to the reversionary beneficiary themselves needing to satisfy a condition of release at the time of the original member's death. While this is creating a degree of uncertainty from an estate planning point of view, a number of industry participants are currently seeking further clarification on the issue," Howard said.

Read more: TRISRetirementBTAPRATransition to retirementBTFGBT Financial GroupFinancial adviceFinancial planningTim Howard
Link to something H0c53yhs