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A fund has been paying account based pensions to two of its members for a number of years. I have not been supplied copies of the pension documents nor the trustee resolutions and I have reason to believe that they do not exist. In the absence of these documents, is the fund still entitled to claim ECPI? The deed allows for the payment of account based pensions.
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Hi Ron
This is an issue that different members have different views on and it would be great to get members views as to how they would address this issue.
The fund is still entitled to ECPI assuming the pension members are over preservation age and have met a condition of release i.e. they have retirement phase pensions and on the basis that the pensions exist and are allowable under the terms of the trust deed.
You should request the trustee in your management letter to undertake a thorough search for pension commencement documents. If the original pension documents cannot be located an option would be for the trustee / member to sign a document similar to that provided below (to support the pension having been commenced).
Thanks
SMSF AAA
Example pension commencement confirmation:
11 April 2022
To: The auditor
Dear Auditor,
RE: White Pension Fund
I am writing to advise you that I commenced the below account-based pension. This pension was commenced after I satisfied a condition of release:
Opening Balance: $168,213 on 1 July 2020
Commenced pension: 01/07/2012
Condition of release: reached 65 years of age
Please contact us if you have any questions with the above.
Regards
_________________
John White
Director
White Super Pty Ltd