“Anecdotally, a lot of advisers are being told for the first time by their clients that they’ve actually got a capped defined benefit income stream operating somewhere,” Mr Hogan said.

In the past, these types of income streams didn’t impact other pensions so clients may not realise they need to notify their practitioner about them, he said.

“SMSF practitioners need to check that they have all the relevant information from their clients, particularly if they’re aware that the client has employment history with the government,” Mr Hogan warned.

“They may need to dig a little deeper. There may be some of these other entitlements that they’re not aware of.”

Having all this information on income streams will be critical for creating the minute for the commutation request.

“The minute needs to appropriately acknowledge the existence of other pension accounts elsewhere that may impact upon what happens with any pension that’s being paid out of the SMSF in terms of how much needs to be commuted and whether, in fact, it’s the SMSF pension that will be commuted or whether it will be some other pension entitlement that will need to be commuted,” Mr Hogan said.