diff --git a/rm-server/source/java/org/alfresco/module/org_alfresco_module_rm/disposition/DispositionServiceImpl.java b/rm-server/source/java/org/alfresco/module/org_alfresco_module_rm/disposition/DispositionServiceImpl.java
index 79e86ec705..920bc24eb3 100644
--- a/rm-server/source/java/org/alfresco/module/org_alfresco_module_rm/disposition/DispositionServiceImpl.java
+++ b/rm-server/source/java/org/alfresco/module/org_alfresco_module_rm/disposition/DispositionServiceImpl.java
@@ -285,8 +285,8 @@ public class DispositionServiceImpl extends    ServiceBaseImpl
                             return null;
                         }
                     });
+                 dsNodeRef = dsNextAction.getDispositionNodeRef();    
             }
-            dsNodeRef = dsNextAction.getDispositionNodeRef();
         }
         else
         {
diff --git a/rm-server/test/java/org/alfresco/module/org_alfresco_module_rm/test/integration/disposition/UpdateNextDispositionActionTest.java b/rm-server/test/java/org/alfresco/module/org_alfresco_module_rm/test/integration/disposition/UpdateNextDispositionActionTest.java
new file mode 100644
index 0000000000..81e5043c9f
--- /dev/null
+++ b/rm-server/test/java/org/alfresco/module/org_alfresco_module_rm/test/integration/disposition/UpdateNextDispositionActionTest.java
@@ -0,0 +1,140 @@
+/*
+ * Copyright (C) 2005-2014 Alfresco Software Limited.
+ *
+ * This file is part of Alfresco
+ *
+ * Alfresco is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Lesser General Public License as published by
+ * the Free Software Foundation, either version 3 of the License, or
+ * (at your option) any later version.
+ *
+ * Alfresco is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU Lesser General Public License for more details.
+ *
+ * You should have received a copy of the GNU Lesser General Public License
+ * along with Alfresco. If not, see <http://www.gnu.org/licenses/>.
+ */
+package org.alfresco.module.org_alfresco_module_rm.test.integration.disposition;
+
+import static org.alfresco.module.org_alfresco_module_rm.test.util.CommonRMTestUtils.DEFAULT_DISPOSITION_DESCRIPTION;
+import static org.alfresco.module.org_alfresco_module_rm.test.util.CommonRMTestUtils.DEFAULT_DISPOSITION_INSTRUCTIONS;
+import static org.alfresco.module.org_alfresco_module_rm.test.util.CommonRMTestUtils.DEFAULT_EVENT_NAME;
+import static org.alfresco.module.org_alfresco_module_rm.test.util.CommonRMTestUtils.PERIOD_ONE_WEEK;
+import static org.alfresco.util.GUID.generate;
+
+import java.io.Serializable;
+import java.util.Collections;
+import java.util.Date;
+import java.util.HashMap;
+import java.util.Map;
+
+import org.alfresco.module.org_alfresco_module_rm.action.impl.CutOffAction;
+import org.alfresco.module.org_alfresco_module_rm.action.impl.DestroyAction;
+import org.alfresco.module.org_alfresco_module_rm.action.impl.EditDispositionActionAsOfDateAction;
+import org.alfresco.module.org_alfresco_module_rm.action.impl.TransferAction;
+import org.alfresco.module.org_alfresco_module_rm.disposition.DispositionSchedule;
+import org.alfresco.module.org_alfresco_module_rm.test.util.BaseRMTestCase;
+import org.alfresco.service.cmr.repository.NodeRef;
+import org.alfresco.service.namespace.QName;
+
+/**
+* Update next disposition step integration tests.
+*
+* @author Roxana Lucanu
+* @since 2.3.1
+*/
+public class UpdateNextDispositionActionTest extends BaseRMTestCase
+{
+    /**
+     * Given a record with multiple dispositions
+     * When updating the next step
+     * Then the action is available
+     * <p>
+     * relates to https://issues.alfresco.com/jira/browse/RM-3060
+     */
+    public void testUpdateNextDispositionAction_RM3060() throws Exception
+    {
+        doBehaviourDrivenTest(new BehaviourDrivenTest()
+        {
+            NodeRef record;
+            NodeRef folder2;
+
+            @Override
+            public void given()
+            {
+                // create category1
+                NodeRef category1 = filePlanService.createRecordCategory(filePlan, generate());
+
+                // create disposition schedule for category1
+                createDispositionSchedule(category1);
+
+                // create category2
+                NodeRef category2 = filePlanService.createRecordCategory(filePlan, generate());
+
+                // create disposition schedule for category2
+                createDispositionSchedule(category2);
+
+                // create folder2 inside category2
+                folder2 = recordFolderService.createRecordFolder(category2, generate());
+
+                // create folder1 inside category1
+                NodeRef folder1 = recordFolderService.createRecordFolder(category1, generate());
+
+                // create record inside folder1
+                record = utils.createRecord(folder1, generate(), generate());
+
+            }
+            @Override
+            public void when() throws Exception
+            {
+                // link the record to folder2
+                recordService.link(record, folder2);
+
+                // complete record
+                utils.completeRecord(record);
+
+                // set the disposition as of date to now on the record
+                rmActionService.executeRecordsManagementAction(record, 
+                        EditDispositionActionAsOfDateAction.NAME, 
+                        Collections.singletonMap(EditDispositionActionAsOfDateAction.PARAM_AS_OF_DATE, new Date()));
+
+                // cut off
+                rmActionService.executeRecordsManagementAction(record, CutOffAction.NAME, null); 
+            }
+
+            @Override
+            public void then() throws Exception
+            {
+                assertTrue("Record " + record + " doesn't have the cutOff aspect.", nodeService.hasAspect(record, ASPECT_CUT_OFF));
+            }
+        });
+    }
+
+    private void createDispositionSchedule(NodeRef category)
+    {
+        DispositionSchedule ds = utils.createDispositionSchedule(category, DEFAULT_DISPOSITION_INSTRUCTIONS, DEFAULT_DISPOSITION_DESCRIPTION, true, false, false);
+
+        // create the properties for CUTOFF action and add it to the disposition action definition
+        Map<QName, Serializable> cutOff = new HashMap<QName, Serializable>(3);
+        cutOff.put(PROP_DISPOSITION_ACTION_NAME, CutOffAction.NAME);
+        cutOff.put(PROP_DISPOSITION_DESCRIPTION, generate());
+        cutOff.put(PROP_DISPOSITION_PERIOD, PERIOD_ONE_WEEK);
+        dispositionService.addDispositionActionDefinition(ds, cutOff);
+
+        // create the properties for TRANSFER action and add it to the disposition action definition
+        Map<QName, Serializable> transfer = new HashMap<QName, Serializable>(3);
+        transfer.put(PROP_DISPOSITION_ACTION_NAME, TransferAction.NAME);
+        transfer.put(PROP_DISPOSITION_DESCRIPTION, generate());
+        transfer.put(PROP_DISPOSITION_EVENT, (Serializable)Collections.singletonList(DEFAULT_EVENT_NAME));
+        dispositionService.addDispositionActionDefinition(ds, transfer);
+
+        // create the properties for DESTROY action and add it to the disposition action definition
+        Map<QName, Serializable> destroy = new HashMap<QName, Serializable>(3);
+        destroy.put(PROP_DISPOSITION_ACTION_NAME, DestroyAction.NAME);
+        destroy.put(PROP_DISPOSITION_DESCRIPTION, generate());
+        destroy.put(PROP_DISPOSITION_PERIOD, PERIOD_ONE_WEEK);
+        dispositionService.addDispositionActionDefinition(ds, destroy);
+    }
+}
\ No newline at end of file