Q & A of the month – Account-based pensions

Find out what your peers are asking – based on real-life questions submitted to TechConnect.

By Stuary Sheary, Senior Technical Manager

Q: If my client declares retirement, then returns to work, do they have to stop their account-based pension and roll it to accumulation or a transition to retirement pension?

A: The client’s existing account-based pension (ABP) can be retained and will remain fully accessible regardless of whether the client returns to work.


If a client satisfies a condition of release with nil cashing restrictions, such as retirement, then all benefits up to that point in time become unrestricted non-preserved.

If these benefits are transferred into an ABP, then the entire ABP remains fully accessible, indefinitely.

Where benefits remain in accumulation, any growth or contributions after the point in time where the condition of release has been satisfied (with nil cashing restrictions), the account will be preserved until another full condition of release is satisfied.

In the case of retirement, this might mean the client redeclaring that they have attained preservation age, ceased a gainful employment arrangement and has no intention of returning to work for 10 hours or more a week, or declaring that another employment arrangement has ceased after the age of 60.

Click here to read additional information on Income Streams.

More information

If you have any questions, or would like more information, please contact the IOOF TechConnect team on 1300 650 414.

The information in this section of the website is intended for financial advisers only and is not to be distributed to clients. It has been prepared on behalf of Australian Executor Trustees Limited ABN 84 007 869 794 AFSL 240023, IOOF Investment Management Limited ABN 53 006 695 021 AFSL 230524, IOOF Investment Services Ltd ABN 80 007 350 405, AFSL 230703 and IOOF Ltd ABN 21 087 649 625 AFSL 230522 based on information that is believed to be accurate and reliable at the time of publication.