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 based on your client’s account balance as at 1 July each year.
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 minimum pension payment for FY23/24, 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 3 June 2024 - otherwise, we’ll sell down assets to top up your client’s 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 client has enough cash in their Cash Hub, we’ll pay the pension amount they’ve requested.
If there’s not enough money in their Cash Hub to pay that amount, we’ll manually change it to the minimum payment that still needs to be made for the year.
Future pension payments in the new financial year will be calculated based on the most recently selected pension payment amount and payment frequency in the previous financial year, with adjustments made for any indexation or fixed rate increases your client has requested. If your client made changes to their selected pension amount throughout the year, please review the latest pension details.
Please review the newly calculated amount straight after our recalculation period to ensure it meets your client’s expectations. This will avoid the need for an ad hoc payment request after your client receives their first pension payment in the new financial year.
How can I increase or decrease my client's pension payments?
You can view this Help Centre article for more information.