[The Auditors Institute Ltd]

Hello Phuong

Thanks for the question.

It is important to note that a pension/income stream payment cannot be made in specie.

However, where an Account Based Pension (ABP) is in place, it is possible to have what is referred to as a partial commutation and make a lump sum payment that can include an in specie lump sum.  The partial commutation will not count towards the satisfaction of the payment of the minimum pension payment for the ABP.

As a broad proposition, if the SMSF’s deed has not been updated since 1 July 2017, it might need to be updated so as to appropriately deal with the contemplated partial commutation.

Best regards

The Auditors Institute