Pension recalculations

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.

After the pension recalculations have been completed, we encourage you to review your client’s July pension payment amount to ensure it meets your expectations and to avoid processing times associated with an ad-hoc request.

What happens when pensions get recalculated?

Pensions are calculated on the basis of age and account balance.

Following the recalculations, you may notice that the amount for your client’s regular pension payments has changed.

We encourage you to make sure your client’s first pension payment in the new financial year is in line with their expectations.

What you need to do

  1. Before 1 July 2023

    • Review your client’s pension payment details and make any changes in Adviser Online before 30 June 2023.
    • Once you’re logged in to Adviser Online
      • Go to clients
      • Select wrap account & administration
      • Select maintain a pension account
      • Input the relevant client details
      • Select amend annual pension details to make any changes.
  2. During pension recalculations

    • As mentioned above, no changes can be made to pension accounts online 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.
    • If your client’s fortnightly pension payment is due during ‘the pension freeze’, the pension payment will be processed on time, but the amount will be the same as the preceding pension payment. After the pension recalculation, the subsequent fortnightly pension payments will be adjusted according to your client’s pension escalation option for the remaining financial year. We encourage you to review your client’s subsequent pension payment amounts to ensure it meets your expectations.
  3. After the recalculations

    • Review your client’s 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.