When the pension shortfall is under 1/12 of the minimum annual payment. The trustees can self-assess the eligibility for an exception to apply and continue the pension status. This is a one-time concession.
- The minimum pension requirements are not met due to an honest mistake or matters beyond the trustee’s control;
- The entitlement to the exempt current pension income exemption would have continued but for the trustee failing to pay the minimum payment amount;
- Upon the trustee becoming aware that the minimum payment amount was not met for an income year, they made a catch-up payment as soon as practicable in the following income year; or treated a payment made in the following year as being made in the year of the shortfall;
- Had the trustee made the catch-up payment in the year of the shortfall, the minimum pension standards would have been met;
- The trustee treated the catch-up payment, for all other purposes, as if it were made in the year of the shortfall
- The trustee has not previously applied the exception for another income year