Due to recent share market falls, the Government reduced the minimum annual payment requirements for account based pensions (including TTR income streams) by 50% for 2019/20 and 2020/21.
As this was legislated on 25 March 2020, and applies to the entire 2019-20 financial year (i.e. not pro-rated) most members with account based pensions will have already received pension payments during 2019/20 that exceed the new reduced minimum.
If a member has already drawn the reduced minimum in 2019-20 they are not required to take any additional payments. However, from a practical perspective, members may need to contact their fund to confirm they wish to reduce their pension payments accordingly.
Super funds will generally not automatically reduce pension payments in 2019/20 without being notified by the member.
It is also important to check the procedures for 2020/21. Many super funds are applying the reduced minimum annual payments in 2020/21 where the client has nominated to receive the minimum annual payment, however it will depend on the super fund’s procedures.
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