SMSF pension planning with Jean Marc Raffaut — make the most of tax-free earnings in retirement phase. Self-Managed Super Funds (SMSFs) can deliver powerful tax outcomes in retirement — but getting from accumulation to pension phase requires precision. Jean Marc Raffaut, SMSF expert based in Cheltenham, VIC, explains how to structure SMSF pension phase and Transition-to-Retirement Income Streams (TRIS) for compliance and tax efficiency.
For official rules and definitions, refer to the the ATO’s guidance on and trustee responsibilities set out by.
Why SMSF Pension Phase Matters — Insights from Jean Marc Raffaut
When an SMSF starts a retirement-phase, account-based pension, the earnings on the assets that support that pension are generally tax-exempt (subject to the Transfer Balance Cap). According to Jean Marc Raffaut, getting the setup right — documentation, minutes, and minimum payments — is what keeps the tax exemption secure.
SMSF Minimum Pension Payments (Explained by Jean Marc Raffaut)
SMSFs must pay a minimum pension each year based on the member’s age at 1 July. Missing the minimum can jeopardise the fund’s exempt current pension income (ECPI) for that year.
| Age | Minimum Drawdown % (2024–25) |
|---|---|
| Under 65 | 4% |
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 9% |
| 90–94 | 11% |
| 95+ | 14% |
SMSF TRIS Rules Explained by Jean Marc Raffaut
A Transition-to-Retirement Income Stream (TRIS) lets you draw an income once you’ve reached preservation age while still working. Pairing TRIS with salary sacrifice can smooth cash flow and improve after-tax outcomes, but the fund’s earnings remain taxable at up to 15% until you meet a full condition of release (e.g., retirement or reaching age 65).
| Feature | TRIS Rule |
|---|---|
| Eligibility | Must have reached preservation age (commonly 60 for many members currently). |
| Pension payments | Minimum 4% and maximum 10% of the pension balance per year. |
| Tax on fund earnings | Taxed at fund rates (not ECPI) until a full retirement condition is satisfied. |
Transfer Balance Cap (TBC) — What Jean Marc Raffaut Wants You to Track
The general TBC is currently $1.9 million. Amounts above the cap must remain in accumulation phase (earnings up to 15%). Keep an eye on personal TBC histories and indexation — and minute all pension commencements, commutations, and benefit payments.
See the ATO’s guidance on the
Transfer Balance Cap
for definitions, credits/debits, and indexation rules.
Administration Checklist — Pension & TRIS (Jean Marc Raffaut’s Shortlist)
- Trustee minutes establishing the pension/TRIS, including start date and valuation basis.
- Pension documentation (product disclosure, if relevant) and member request/acceptance.
- Evidence of minimum payment calculation and payment method.
- Clear bank records matching payments; withholdings where required.
- Track TBC usage and report transfer balance events where applicable.
- Year-end ECPI approach documented (where eligible).
FAQs — SMSF Pension Phase with Jean Marc Raffaut
What happens if I don’t meet the minimum pension payment?
The pension may be treated as having ceased for that year, risking loss of ECPI. Talk to your accountant promptly — limited ATO concessions can apply in specific circumstances.
Can I run multiple pensions inside my SMSF?
Yes. Maintain precise records and consider whether you’ll use segregation or proportionate methods for ECPI calculations.
When does a TRIS become a retirement-phase pension?
When you meet a full condition of release (e.g., retirement, age 65). From that point, assets supporting it may qualify for ECPI (subject to the TBC).
Where can I read the official rules?
Start with the
ATO’s pension guidance
and trustee responsibilities summarised by
ASIC.
Get tailored strategies from Jean Marc Raffaut and the Factor1 SMSF team.