Administrator Account posted on May 01, 2009 04:33
On 18 February 2009, the Government released regulations to suspend minimum account-based pension draw down requirements for the second half of 2008-09. This will occur through a 50% reduction in the minimum payment amount on account-based pensions for 2008-09.
Current Minimum Payment Percentages
The current minimum payment percentages for account-based pensions are set out below.
|
Age
|
Per cent of account balance
|
|
Under 65
|
4
|
|
65 – 74
|
5
|
|
75 – 79
|
6
|
|
80 – 84
|
7
|
|
85 – 89
|
9
|
|
90 – 94
|
11
|
|
95 – more
|
14
|
Eligibility
The 50% reduction of the minimum payment requirement applies to superannuation pensions such as:
· Account-based pensions payable since 1 July 2007
· Transition to Retirement income streams
· Allocated pensions pre-dating Better Super Charges
Those who have already taken half of the current minimum payment for 2008-09
· The annual nature of the minimum payment rules means that a further payment will not be required until the end of the 2009-10 year.
· The excess cannot be contributed directly into a superannuation pension account. However, a person can make contributions to a superannuation accumulation account where they are below the age of 65, or aged between 65 and 74 and meet a work test.