7Lifetime income stream arising under a private sector fund

7 Lifetime income stream arising under a private sector fund

(1) The Secretary may determine that a lifetime income stream arising under a private sector fund is an asset-test exempt income stream for the purposes of the Act if: (a) it is a lifetime income stream that is a defined benefit income stream; and (b) it is paid from a private sector fund that was established before 20 September 1998; and (c) regardless of its commencement day, it would have been treated as a superannuation pension and had its value disregarded in calculating the person’s assets under section 1118 of the Act as in force immediately before 20 September 1998. (2) The private sector fund mentioned in paragraph 1(b) must have a direct connection with the previous employment of the recipient of the lifetime income stream or, in the case of a reversionary beneficiary, the person who would be the recipient had they not died. (3) For subsection (2), a private sector fund has a direct connection with a person’s previous employment if the lifetime income stream from the private sector fund became payable to, or in respect of, the person because of that employment.