The commutation conundrum – it’s a matter of fact
What should a client do if their pension exceeded $1.6m prior to 1 July 2017? More specifically what should they do with the excess? This is the commutation conundrum. Of course we know that all of these clients have taken the appropriate action to commute these pensions back to $1.6m on or before 30 June 2017 but the real question is whether they will leave the excess in accumulation or take it out of the superannuation system. To commute and withdraw or not to! This is somewhat of a philosophical debate, or is it?