There are basically 3 components of your super in terms of your ability to access your super (otherwise known as the preservation rules):
- Preserved Benefits
- Restricted Non Preserved Benefits
- Unrestricted Non Preserved Benefits
Preserved benefits
- Preserved Benefits (PB’s) – are benefits that you cannot withdraw (preserved) until you meet a . If you joined the superfund after 1.7.99 then all benefits accrued in the fund will be preserved, until you reach your preservation age (retirement age) and retire from employment or simply reach 60 years of age. Examples of the components are:
- > 30.6.99 – deductible contributions
- > 30.6.99 undeductible contributions
- > 30.6.99 investment earnings
- < 1.7.99 SG mandated employer contributions
- < 1.7.99 personal deductible contributions
- < 1.7.99 rolled over benefits not otherwise identified
Restricted Non Preserved Benefits
- Restricted Non Preserved Benefits (“RNPB’s) – these benefits also cannot be withdrawn unless a member meets a condition of release, like ceasing employment at 65, or retiring after preservation age. These funds can be paid out as a lump sum or ABP. Typically these RNPB’s include:
- > 30.6.99 – existing RNPB’s in the fund and
- > 30.6.99 – rolled over RNPB’s
- < 1.7.99 – salary sacrificed contributions
- < 1.7.99 – undeducted contributions
Unrestricted Non Preserved Benefits
- Unrestricted Non Preserved Benefits (“UNPB’s) –There are no conditions required for the funds to be released and funds can be withdrawn at any time. Examples of UNBP’s. include:
- PB’s and RNPB after meeting a condition of release with no item 108 schedule1 of the reg’s.
- < 1.7.99 – an Employer ETP rolled into a Super Fund/SMSF
- < 1.7.99 investment earnings accruing on UNBP’s
- < 1.7.04 – Employer ETP’s rolled into the fund (except exempt components)
- UNBP’s rolled from another fund
Where a trustee receives funds from a rollover of another fund, the trustee must be satisfied of the components of the rollover funds. Where the trustee is not satisfied the trustee must treat the funds received as a mandated employer financed contribution, preserved benefits. Div 6.2 of the SIS regulations deal with payment of benefits. The next step is you need to meet a condition of release.
Strategy Tip – Cheery picking these components when withdrawing either as a Lump Sum or a Pension/TRIS is NOT allowed in accordance with the <proportionate rule>. However it is allowed when commencing a TRIS/Pension.
Here’s what the ATO has to say <ATO-Link>.
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