50% Reduction in Minimum Pension

To assist retirees during COVID-19 crisis, the Government reduced the minimum annual payment required for account-based pensions and annuities, allocated pensions and annuities and market-linked pensions and annuities by 50% in the 201-20 and the 2020-21 financial years.

Superannuation and annuity providers calculate the minimum annual payment required at 1 July each year, based on the account balance of the member or annuitant.  The 50% reduction will apply to the calculated minimum annual payment.  If the member elects to withdraw the reduced 50% minimum pension this decision should be documented via a minute.  If the member has already withdrawn above the minimum any deposits will be treated as a contribution and the normal contribution rules will apply.