In the first half of July every year, we recalculate the pension amounts for the new financial year. During this time, which we also refer to as ‘the pension freeze’ or ‘pension escalation’, you won’t be able to make any changes online to pension payments.
What happens when pensions get recalculated?
Pensions are calculated on the basis of age and account balance as at 1 July. Following the recalculations, you may notice that the amount outlined in your pension payments has changed.
This may impact how much you receive in your next pension payment. Therefore, it’s important that you review your first pension payment of the new financial year.
What you need to do
Before 1 July 2023
- Review your pension payment details and contact us to make any changes
During pension recalculations
- As mentioned above, no changes can be made to pension accounts during this period. Any pension payments or lump sum payment requests received during this time will be processed after the pension recalculations have been finalised
- A pension payment won’t be made to you in the first week of July (except a fortnightly payment) while recalculation is occurring. If your fortnightly pension payment is due during ‘the pension freeze’, the pension payment will be processed on time, but the amount will be same as the preceding pension payment. After the pension recalculation, the subsequent fortnightly pension payments will be adjusted according to your pension escalation option for the remaining financial year. We encourage you to review your subsequent pension payment amounts to ensure it meets your expectations
After the recalculations
- Review your first pension payment in the new financial year.
- If you need to make any changes and have an upcoming July pension payment, you’ll have a few days to make sure your changes can take effect before the payment is made.