Product Disclosure Statement (Pension only)

What is a Product Disclosure Statement (PDS)?

A PDS is a statement that provides a Summary of Important Information as background to issues that may affect your decision to be, remain and maintain your role as both a trustee and member of the SMSF.

A PDS is a notification that explains the main provisions of the SMSF and the form of and manner in which a member may receive benefits. The actual operation of the Fund is governed by the Trust Deed and the Rules of the Fund. Accordingly, the PDS should be treated as a guide only to the more important provisions of the Trust Deed and Rules.

Moving from accumulation phase to pension phase within a SMSF is considered to be issuing a new “superannuation interest”. Accordingly, a PDS may be issued to a member entering pension phase to provide background information setting out the significant benefits and risks relating to this phase.

Our PDS covers account-based pensions and transition to retirement income streams.

Checklist is not available for this document.

Sample is not available for this document.

Super Fund Details
• Name of your Superannuation Fund
• Why do I need a Product Disclosure Statement?

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Super Fund Details

• Name of your Superannuation Fund

  Please enter the full name of your SMSF. Do not put "the" before the name of your Super Fund.
  
  For example:
  
  John Smith Superannuation Fund
  
  Nicholson Family Superannuation Trust
  
  Hutton-Grieve Super Fund
  

  This hint is provided by Peter Bobbin (Argyle Lawyers).

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• Why do I need a Product Disclosure Statement?

  The legislation surrounding Superannuation Funds requires, in part, that the “issuer” of a “financial product” - which includes a “superannuation interest” - must provide new members with a Product Disclosure Statement (PDS) to assist the member to decide whether to use the product. In the case of an SMSF, the “issuer” is the Trustee of the SMSF. The PDS must be provided “at or before” the time the member decides to use the product.
  
  Moving from accumulation phase to pension phase within a SMSF is considered to be issuing a new “superannuation interest” – the Trustees therefore need to provide the member changing to pension phase with a PDS setting out the significant benefits, risks, features and costs relating to the superannuation interest.
  
  The advantage of having a PDS is that it sets out, clearly and simply, what the member’s benefits are, what restrictions there are on accessing those benefits and what happens when the member dies. This information is more easily accessed through a PDS than through reading the Trust Deed in conjunction with the superannuation legislation.
  
  Our PDS covers Account-Based Pensions and Transition to Retirement Income Streams.
  

  This hint is provided by Peter Bobbin (Argyle Lawyers).

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This document has been prepared by Peter Bobbin (Argyle Lawyers)