How a pension works
You can invest your super in a Club Plus Pension to receive tax-effective regular income in retirement. Members aged over 55 can access their super through a Transition to Retirement (TTR) pension, while continuing to work. Money is invested in your choice of investment options , with a pension income payable to you as long as there is enough money in your Club Plus Pension account to make the payment.
A superannuation pension gives you the flexibility to choose how much pension you receive each year (subject to Commonwealth Government limits). You may also take part of your pension account balance as a lump sum (unless it is a Transition to Retirement Pension, in which case you must meet a condition of release). Lump sum payments may impact on the ability to sustain your pension over the long-term. Upon your death, the balance of your account is payable to your dependants or legal personal representative, or you can elect for your pension to continue to be paid to your spouse as a reversionary pension.
You must nominate the pension amount you want to receive from your Club Plus Pension and provide details of the bank, building society or credit union account to which the payment should be made. Club Plus Pension payments can only be made by direct credit to your nominated account. Pension payments are not made by cheque.
Pension payment frequency and payment dates are shown in the table below:
|Twice-monthly||5th and 20th of each month|
|Monthly||20th of each month|
|Quarterly||20th of March, June, September and December|
|Half-yearly||20th of June and December|
|Yearly||20th of June|
The Commonwealth Government sets limits on the minimum amount you must receive as a pension in any twelve-month period to 30 June, based on your age as at 1 July each year.
|Age||Legislated minimum percentage|
|65 – 74||5%|
|75 – 79||6%|
|80 – 84||7%|
|85 – 89||9%|
|90 – 94||11%|
|95 or older||14%|
The limits are calculated on your initial deposit and then recalculated on your balance at 1 July each year thereafter. You will be advised of the limits for each year and receive a form to nominate your new pension amount. This will generally occur in September each year, included in your Annual Statement. If you do not advise a new amount, your pension payment will generally continue at its previous level. If that amount is less than the minimum limit for that year, your pension payment will increase to the minimum required amount.
Your account balance will vary depending on:
- the amount of pension payments paid to you;
- the investment earnings (either positive or negative) of your chosen investment option(s);
- any lump sum withdrawals made from your pension, and;
- fees deducted.
You can change your nominated pension amount at any time, provided you receive at least the minimum amount for any given year. We require five business days to process a change to your nominated pension amount, so allow at least that much time if you wish it to be effective for your next payment.
If your minimum pension amount for a financial year is not reached by the date of your last payment, you will receive the outstanding amount as an additional payment.
For Transition to Retirement pensions, if the maximum pension amount is reached during the financial year, the relevant payment will be reduced to ensure the maximum amount is not exceeded. No further pension payments can be made to you for that year.
Club Plus Super makes pension payments from your account until your account balance is nil. The length of time your pension payments continue depends on the value of your investment, the amount of pension income you take each year, and the investment earnings generated from the investment option(s) you choose. There is no guarantee that your pension payments will continue for life.