What is the difference between a "Rollback" and a "Commutation"?

Keywords: rollback, pension, commutation, accumulation phase, lump sum payment, commutation of pension, rollback of pension

 

Question 

What is the difference between a "Rollback" and a "Commutation"?

Answer

A rollback is when a pension (either fully or a partial amount) is rolled back into accumulation phase whereas a commutation is when a pension (again, either fully or a partial amount) is converted into a lump sum payment that is paid to the member (rather than rolling back into accumulation phase where it remains within the superannuation fund).

 

Further Information

How to create a Pension Document

Commutation of Pension: Ordering checklist

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