What are minimum annual pension payments?
Account based pensions are subject to a minimum amount that needs to be paid out each financial year.
We calculate the minimum annual payment required as at 1 July each year, based on your client’s account balance.
As part of their response to COVID-19 and ongoing market volatility, the Federal Government reduced the annual pension minimum requirements for the FY19/20, 20/21, 21/22 and 22/23 financial years by 50%.
We’ve applied this 50% reduction when we calculated your client’s minimum annual payment for the FY22/23.
For FY23/24, the minimum payments are going back to what they were before the temporary reduction.
If your client doesn't have enough cash in their Cash Hub
If your client has insufficient cash in their Cash Hub to meet the pension minimum for FY22/23, you’ll need to organise a sell down of some assets to top up available cash before their next pension payment.
You’ll need to do this before Monday 5 June 2023.
What happens if I don’t place a sell-down order before Monday 5 June?
If there isn’t enough cash or if sell orders haven’t been placed to cover their annual pension minimum by Monday 5 June 2023, we’ll sell down assets to top up their available cash from this date. You can view our Product Disclosure Statement (PDS) for more information.
Pension payments above the minimum requirement
As long as your clients have enough cash in their Cash Hub, we’ll pay their elected pension amount.
If there’s not enough money in their Cash Hub to pay the amount which has been chosen, we’ll manually change it to the remaining annual pension minimum amount for the year.
Future pension payments in the new financial year will revert to their previous instructions, as long as these meet the minimum pension requirements.