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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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It's also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.