The Government today announced an extension to the transitional relief currently available for small funds providing defined benefit pensions until 31 December 2005.
In June 2004, the Government announced a review into the provision of pensions by small funds, while introducing transitional rules to allow people who were members of a small fund on 11 May 2004 and who retire before 1 July 2005 to commence a defined benefit pension.
Following consultation with industry, Treasury released a discussion paper in January, with comments due on 11 March. However, this deadline was deferred until April to allow industry further time to make their submissions.
The Government is still considering the outcome of the review following the finalisation of the consultation process.
'The extension will give retirees greater certainty about the range of income stream options available to them while the Government considers its response,' Mr Brough said.