Benefits to members may be paid in the form of a lump sum, or an income stream.
Benefits can also be paid as a combination of both, as long as super laws, and your fund’s trust deed allows it. When a member has died, the benefits are paid to their dependant beneficiaries or the deceased estate.
When a member wants to commence receiving a super benefit, as trustee you need to be provided with a written request from the member confirming the condition of release they have met and notifying you of their intention to access benefits.
The member needs to advise what type of super payment they’re seeking (lump sum, income stream or both) and the account from which it will be paid from needs to be identified (if applicable). It’s important you document this at the time the payment is requested and record it in trustee minutes.
For more information, see paying benefits, on the ATO website.
Note: The type of payment chosen may affect the amount of tax paid and the amount of money the member has for retirement. The ATO recommend members seek professional advice before requesting payment of a super benefit.
