Our low-fee Retirement Pension is about to get even better
Retirement

Our low-fee Retirement Pension is about to get even better

We’re making some changes that could benefit you from 1 April 2021.*

Eligible members who open a new Retirement Pension account from 1 April 2021* could receive an additional Pension Bonus!

If you’re recently retired or thinking about retiring soon, our low-fee Retirement Pension account could be a great option for you. A retirement pension turns your super into a regular income while the balance stays invested.

You can start a retirement pension if you’ve reached your preservation age and permanently retired, or if you’re aged 65 or older. 

You could receive a Pension Bonus 

If you transfer an existing LUCRF Super TTR Pension or super account to a new Retirement Pension account, you may be eligible to receive a bonus amount automatically credited to your opening balance.    

Where does the Pension Bonus come from?

When you have a TTR Pension or super account with us, we set aside funds that would normally be paid to the government as tax. These funds are usually used to pay taxes for future capital gains that arise when investment assets are sold.  

When you transfer your TTR Pension or super account to a Retirement Pension account with us, your money moves to a tax-free environment. The funds we previously set aside for tax from your TTR Pension or super account can then be credited to the opening balance of your new account as a Pension Bonus back to you (subject to eligibility).

What do you need to do?

You don’t need to apply. If you’re eligible to receive it, the Pension Bonus will automatically be applied as a credit to the opening balance of your new Retirement Pension account.

How much could you receive?

How is the Pension Bonus calculated?

It’s calculated at 0.3% of the average balance in each eligible investment option over the previous 12 months before transfer, up to a maximum of $4,800 (where the $1.6 million cap applies – see Pension Bonus rules below for changes to the amount of the transfer balance cap from 1 July 2021 onwards).

Note: the maximum pension bonus payable will increase to $5,100 from 1 July 2021 as the balance transfer cap increases to $1.7 million due to indexation.

How much will you receive?

The amount of Pension Bonus you receive will vary depending on your individual circumstances. The bonus is calculated at the time you open your new Retirement Pension account and is based on how your funds were invested before they're transferred.

The exact amount you'll receive can only be determined when a new Retirement Pension account is opened and your TTR Pension or super funds are transferred in. The table below, however, shows the calculated Pension Bonus based on a member's average TTR Pension or super account balance over 12 months:
 
Average 12-month super /
TTR Pension account balance
Pension Bonus amount
$100,000 $300
$250,000 $750
$500,000 $1,500
$1,000,000 $3,000
$1,600,000 $4,800

Is there a chance your Pension Bonus could be zero?

Any Pension Bonus you're eligible for will depend on the amount of funds available and set aside for tax while your TTR Pension or super account was open. It's possible that the calculation of the bonus may result in a zero amount. For example, negative market performance can reduce the bonus amount to zero for an investment option that is in a loss position. The Pension Bonus could also be zero if you're fully invested in cash.

We may also choose to modify the Pension Bonus rate amount to zero, depending on market conditions and performance.

Eligibility criteria

Who can open a retirement pension?

You can start a retirement pension if you've reached your preservation age and permanently retired, or you're aged 65 or older.

Does everyone get the Pension Bonus?

Existing super and TTR Pension members of one year or longer, invested in an eligible investment option during the last 12 months could receive the Pension Bonus after transferring funds into a new Retirement Pension account for the first time with us.

Your new Retirement Pension account must be opened on or after 1 April 2021. Accounts opened before 1 April 2021 are not eligible to receive the Pension Bonus.

What are the eligible investment options?

  • MySuper Balanced (or Balanced for TTR accounts)
  • High Growth
  • Indexed Balanced
  • Moderate
  • Conservative
  • Australian Shares (Active)
  • International Shares (Active)
  • Australian Shares (Indexed)
  • International Shares (Indexed)
  • Property
  • Targeted Return (closed 8 October 2020)1
  • Indexed Shares (closed 8 October 2020)1
1 The Pension Bonus is calculated for the period where members were invested in these options prior to closure.

What if your TTR Pension or super account was invested in the Cash option?

Any funds in your TTR Pension or super account which are invested in the Cash option won’t be eligible to receive the Pension Bonus. This means that these funds won’t be included when we calculate your Pension Bonus.

Can you receive the Pension Bonus more than once?

The Pension Bonus will only be available once per member. Members who open subsequent LUCRF Retirement Pension accounts or restart their existing Retirement Pension account after they’ve already received a Pension Bonus will not be eligible for another bonus.

Pension Bonus rules

Can I lose the Pension Bonus once received?

So that all members are treated fairly when receiving the Pension Bonus, there are conditions that must be met for you to keep the bonus once you’ve received it. If you close or withdraw more than 50% of your Retirement Pension account within 12 months of opening it, the bonus will be reversed (or ‘clawed back’) from your account.

Withdrawals can include either regular pension payments, additional payments or rollovers to another super fund. Withdrawals due to death or terminal illness are excluded from the clawback condition.

What impact does the Pension Bonus have on the minimum drawdown amount?

If you receive a Pension Bonus, it will be included in the calculation of your minimum drawdown amount for the financial year in which you receive it. Each year after this, your balance at 1 July will be used to calculate your minimum drawdown amount.

What impact does the Pension Bonus have on the $1.6 million transfer balance cap?

Any Pension Bonus you receive will count toward the $1.6 million cap (increasing to $1.7 million for people who start a retirement phase income stream for the first time on or after 1 July 2021). You’ll need to make sure the amount you transfer to your retirement pension account plus the Pension Bonus won’t exceed the cap. To learn more about the cap, download the PDS.

* The launch date may be subject to change. In the event the intended launch date of 1 April 2021 is delayed for any reason, we will implement the changes as soon as possible after this date. We will notify members of any date change by updating this page.

This notice explains the changes that will be made to our Retirement Pension account and will be described in the updated Pension Member Guide (Product Disclosure Statement) available from 1 April 2021* here.

If you're unhappy about this change you can lodge a complaint here.

Do you need some help understanding your options?

Speak to one of our experienced financial advisers at no extra cost.

Request a callback

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