Retirement income strategy covenant: Treasury paper released

Treasury on 19 July 2021 released its position paper on the proposed introduction of a retirement income covenant for superannuation trustees. The covenant is intended to codify the requirements and obligations for super trustees (including SMSFs) to improve retirement outcomes for individuals.

Existing covenants in the SIS Act include obligations to formulate, review regularly and give effect to investment, risk management and insurance strategies. The position paper looks to introduce a retirement income covenant in the SIS Act outlining a fundamental obligation of trustees to formulate, review regularly and give effect to a retirement income strategy, with effect from 1 July 2012.