The Treasury has received submissions regarding exposure draft legislation to ensure that a reversionary Transition to Retirement Income Stream (TRIS) will always be allowed to automatically transfer to eligible dependants upon the death of the primary recipient.
Currently, a reversionary TRIS requires that the dependant beneficiary satisfies a condition of release before the benefits are paid from the interest, otherwise the TRIS will cease.
The inability for a TRIS to automatically revert where the dependant has not met a condition of release has resulted in administrative difficulties for funds and potentially requires recently bereaved dependant beneficiaries to engage with their superannuation quickly.
The amendments have now been introduced into the Parliament in the Treasury Laws Amendment (2018 Measures No. 4) Bill 2018.