The Transfer Balance Cap Defined Benefit as the name suggests applies as a Transfer Balance Cap for Defined Benefit pensions.  The Transfer Balance Cap Defined Benefit is becoming well understood for members where the Transfer Balance Cap Defined Benefit is important.

The latest transfer balance cap Legislation includes Defined Benefit Transfer Balance Caps. The new $1.6 Million superannuation transfer balance cap is a game changer for large defined benefit pension recipients.

New Legislation introducing the Transfer Balance Cap and Transfer Balance Cap Defined Benefit is the same as Transfer Balance Cap Defined Benefit and Transfer Balance Cap.  Not sure what this means?  Contact us to clarify what the New Legislation introducing the Transfer Balance Cap and Transfer Balance Cap Defined Benefit actually means and why it is the same as Transfer Balance Cap Defined Benefit and Transfer Balance Cap.

For specific information on the PSS Superannuation Scheme and the CSS Superannuation Scheme, click on the images below to visit our dedicated websites.

We look forward to our future journey with you.....

Defined Benefit Pension changes include the Transfer Balance Cap And Balance Transfer cap as part of the latest superannuation changes.  These also include the $1.6 Million Superannuation Transfer Balance Cap and the Defined Benefit Transfer Balance Cap.

PSS Financial Advice

The new Transfer Balance Cap Legislation has implications for Transfer Balance Cap Defined Benefit, CSS Transfer Balance Cap, PSS Transfer Balance Cap. Transfer Balance Cap CSS and Transfer Balance Cap PSS.  If this makes no sense well how about confirming the The new Transfer Balance Cap Legislation has implications for Transfer Balance Cap Defined Benefit, CSS Transfer Balance Cap, PSS Transfer Balance Cap. Transfer Balance Cap CSS and Transfer Balance Cap PSS.

1.6m Transfer Balance Cap And Latest Superannuation Changes

The new Superannuation rules. including Transfer Balance Caps for Defined Benefit Pensions, including the CSS Transfer Balance Cap and PSS Transfer Balance Cap, and PSS Transfer Balance Credit and CSS Transfer Balance Credit are very complex and their effects should not be underestimated. 


The new Superannuation rules are particularly harsh in relation to the way they assess the $1.6 Million Transfer Balance Cap against Defined Benefit pensions such as CSS, PSS, DFRDB and MSBS.  Multiplying annual pension payments by 16, regardless of age, to determine the Transfer Balance Cap is excessive in our view and for senior long serving members of these schemes, holistic changes to superannuation arrangements are likely to be required before the 1 July 2017 deadline.


For contributing CSS members the declared methodology for determining the CSS Accumulation Phase Value gives a shocking outcome and might require immediate and unexpected action with super contributions.   Multiplying CSS Accumulated Basic Contributions by 2.5 as part of determining the CSS Accumulation Phase Value seems illogical as this aligns the valuation with the 54/11 formula .  As most contributing CSS members are over 55 and will never have the opportunity to voluntarily claim their benefit using this inflated CSS Accumulation Phase Value whose cornerstone is 2.5 times CSS Accumulated Basic Contributions, the whole methodology seems questionable.


The new Superannuation rules are also quite harsh in the way contribution caps, for both concessional and non concessional contributions, are being reduced from 1 July 2017.  For defined benefit members like contributing members of the CSS and PSS, the introduction of notional employer contributions will also adversely affect future salary sacrifice opportunities.


When you realise you are affected by the latest superannuation changes, it will be extremely important to promptly seek Financial Advice from a Certified Financial Planner to ensure you understand all of your options and can make any required changes before the 1 July 2017 deadline.


If you would like to enquire about a cost effective Financial Advice Health Check to ensure you optimise your options, including the $1.6m Transfer Balance Cap, click on the following link to contact us.


If you need assistance to optimise your situation, make contact quickly as time is running out......


Transfer Balance Cap Financial Advice Health Check Enquiry


If you seek our advice, our goal is to assist you to understand where you need to go and what you need to do to get there, and you can then determine the level of assistance and support you require for your journey.

Transfer Balance Cap and defined Benefit Transfer Balance Cap, $1.6 Million Superannuation Transfer Balance Cap

Is it time for you to contact a leading provider of PSS Financial Advice and CSS Financial Advice for a Super Financial Advice Health Check?

Transfer Balance Cap Defined Benefit issues will affect your $1,6m Transfer Balance Cap defined benefit pension

CSS Financial Advice

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TheTeam@financialadviceshop.com.au

On 23 November 2016, the Australian Parliament passed the superannuation measures announced in the 2016 Federal Budget.  As some of these changes are very significant, it is extremely important that you discuss your particular situation with your financial adviser and determine how these changes may affect you.


If you have unanswered questions, need a second opinion or want to confirm advice you have previously been given in relation to the superannuation changes or your Transfer Balance Cap options, including for Defined Benefit Pensions, we have all the answers!

 Some of the key superannuation changes are as follows:

  •  $1.6 Million Transfer Balance Cap
  • Taxation Imposed Where Transfer Balance Cap Is Exceeded
  • Concessional Contribution Cap
  • Division 293 Tax
  • Carry Forward Concessional Cap
  • Deducting Personal Contributions
  • Non Concessional Contribution Cap
  • Low Income Tax Offset
  • Tax Offset For Spouse Contributions
  • Innovative Income Streams And Integrity
  • Anti-Detriment Provisions
  • Administrative Streamlining


Additional summarised information on the dot points above has been provided by The Financial Advice Shop and can be accessed by clicking on the following link:


Legislated Superannuation Change Summary 23 November 2017


If you would like to read the Government's entire Explanatory Memorandum, click on the link below:


Australian Government's 2016 Superannuation Changes Explanatory Memorandum