Are there any restrictions on commutation of transition to retirement income streams?
If a transition to retirement income stream is commuted, the resulting lump sum benefit cannot be taken in cash unless the member satisfies a condition of release with a ‘nil’ cashing restriction (for example, retirement) or the purpose of the commutation is to: • cash an unrestricted non-preserved benefit • pay a superannuation contributions surcharge liability • give effect to a payment split under family law, or • ensure a payment can be made to give effect to a release authority or transitional release authority.
