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.

Please review the newly calculated amount straight after our recalculation period to ensure it meets your client’s expectations. This may avoid the need for an ad hoc payment request after your client receives their first pension payment in the new financial year.

What happens when pensions get recalculated?

Pensions are calculated based on your client’s age, account balance as at 1 July, payment frequency and indexation election.

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 2024

    • Review your client’s pension payment details and make any changes for the remainder of the financial year in Adviser Online before 30 June 2024.
    • 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

    • No changes can be made to pension accounts online during the pension freeze. 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 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.

  3. After the recalculations

    • The pension payments will be adjusted according to your client’s pension indexation option and payment frequency for the new financial year.
    • Review your client’s first pension payment in the new financial year.
    • If your client is getting a pension payment in July, you may only have a few days to review the amount and make changes if required.

This information is issued by Oasis Fund Management Limited (Trustee) (ABN 38 106 045 050, RSE L0001755, AFSL 274331), OnePath Custodians Pty Limited (Trustee) (ABN 12 008 508 496, RSE L0000673, AFSL 238346) and IOOF Investment Services Ltd (Operator) (ABN 80 007 350 405, AFSL 230703). The Trustees and Operator are members of the IOOF group of companies comprising IOOF Holdings Ltd (ABN 49 100 103 722) (IOOF) and its related bodies corporate. IOOF, the Trustees, the Operator, and its related bodies corporate and associated entities do not guarantee the repayment of capital, the performance of, or any rate of return of an investment in the products issued by the Trustees and Operator. Such an investment is subject to investment risk and other risks, including delays in the repayment of capital and loss of income and principal invested. Past performance is not an indication of future performance.

The information provided is for the use of advisers only and is not to be given to potential or existing investors. The information is of a general nature and does not take into account an investor’s personal needs, financial circumstances or objectives. Before acting on this information, an investor must consider the appropriateness of the information, having regard to their needs, financial circumstances and objectives. Full product information including fees, charges, terms and conditions is available in the relevant PDS or IDPS Guide, available by calling Customer Services on 1800 893 141 or visiting wrapinvest.com.au/adviseronline

Account information and reports produced on this site relies on information provided to us from a number of sources and as such the Trustees and Operator make no representations as to the accuracy or completeness of this information and its suitability for your intended use. To the extent permitted by law, the Trustees and Operator do not accept any responsibility or liability arising from your use of this information.

The Wrap Cash Account and Wrap Invest Cash Account are issued by Macquarie Bank Limited (ABN 46 008 583 542 AFSL 237 502).

The information on this website is current as at the date of publication and may be subject to change. For further information, please contact Customer Services on 1800 893 141.