The Government is temporarily reducing the superannuation minimum drawdown requirements by 50%, as part of its Coronavirus Stimulus Package.
How does the new rule affect me?
For members who joined before 25 March 2020
If you’re an existing member and are receiving the standard minimum pension payment you will continue receiving this amount until the end of this financial year. From 1 July 2020 your minimum pension payment will automatically default to the new reduced minimum payment amount. Refer to the table below.
You can choose to change to the new minimum payment amount earlier, that is from 25 March 2020, but you may not receive any payments for the rest of the financial year, until 1 July 2020. This is because you may have already reached the new minimum pension payment limit for the financial year.
Members who have already received more than the reduced minimum aren’t able to pay some of that excess back to their income stream account.
For members who join after 25 March 2020
If you’re a new member, you’ll default to the new and reduced pension payment limit, and this will continue into the 2020-21 financial year.
The table below shows the new reduced minimum drawdown rates for 2019-20 and 2020-21.
|Age at start of retirement income stream (and 1 July each year)||New Minimum Limit due to Coronavirus changes||Previous Minimum Limit (percentage)|
How to apply to increase your pension amount
If you are currently receiving the standard minimum pension payment, you can choose to leave it as is and the new reduced payments will automatically be applied, or you can apply to increase your payments over and above your existing pension payment amount.
You can do this by completing a Change of details form, or by calling us on 1300 650 873 Monday to Friday between 8:30am to 6:00pm (AEST/AEDT).
In the next few weeks, you’ll be able to make these changes online by logging into your account, but we’ll let you know when this function becomes available.
Due to increased demand during this time, requests to change your pension amount may take up to 3 working days to process.
For more information
To learn more about these new changes, please call us on 1300 650 873 Monday to Friday between 8:30am to 6:00pm (AEST/AEDT).