From www.smsfadviser.com: SMSF members receiving an age pension or benefits should seek professional advice before commuting a legacy pension, as it may result in losing their asset test exemption.

Recent legislation provides an amnesty that allows for adjustments to superannuation entitlements without incurring retrospective debt for overpaid age pension benefits when commuting legacy pensions during the five-year period from December 2024 to December 2029.

However, members must consider the long-term implications on their social security status and get guidance on various financial and legal aspects associated with such commutation.