Document ID: chunk:federal_register_of_legislation:F2024L01596:clause:1_19:p2
Version: federal_register_of_legislation:F2024L01596
Segment Type: clause
Provision Reference: sch 1 cl 19 (pt 2/3)
Character Range: 9002–11561

commuted or ceased—the value of the interest that supports the superannuation income stream; and
 (ii) for each superannuation income stream that has been commuted or ceased—the value of the interest, that supported the superannuation income stream, immediately before the superannuation income stream was commuted or ceased.
 (5) This subsection applies if:
 (a) the reserve is a pension reserve of the complying superannuation plan; and
 (b) the amount is allocated from the reserve for you as a result of the commutation of a superannuation income stream; and
 (c) the commutation is a result of the death of the primary beneficiary; and
 (d) you are a death benefits dependant of the primary beneficiary; and
 (e) the amount is allocated from the reserve for you:
 (i) to discharge liabilities of the plan in respect of a superannuation income stream benefit that is payable by the plan as a result of the death of the primary beneficiary; and
 (ii) as soon as practicable on or after the commutation.
 (6) This subsection applies if:
 (a) the reserve is a pension reserve of the complying superannuation plan; and
 (b) the amount is allocated from the reserve for you as a result of the commutation of a superannuation income stream; and
 (c) the commutation is a result of the death of the primary beneficiary; and
 (d) as soon as practicable on or after the commutation, the amount is:
 (i) allocated for you; and
 (ii) paid as a superannuation lump sum and a superannuation death benefit.

Meaning of pension reserve
 (7) A reserve is a pension reserve of a complying superannuation plan at a particular time if the reserve is used at that time solely for the purpose (the pension liability purpose) of enabling the plan to discharge all or part its pension liabilities (contingent or not) as soon as they become due.
 (8) To avoid doubt, for the purposes of subsection (7), if:
 (a) a reserve of a complying superannuation plan is used for the purpose of enabling the plan to discharge all or part of a liability of the plan to pay a superannuation income stream benefit from a superannuation income stream; and
 (b) the superannuation income stream is commuted or otherwise ceases; and
 (c) an amount is allocated from the reserve for a person as a result of the person having been (before the commutation or cessation) the recipient of the superannuation income stream; and
 (d) immediately before the commutation or cessation, the reserve was a pension reserve;
the allocation is taken to be a use of the reserve for the pension liability purpose.