Minimum Pension Drawdown Details
- The Government has announced a continuation of the 25% reduction in minimum pension payment amounts for the 2012/13 financial year.
- Generally the minimum pension payment amount will be reduced by 25% for clients who have nominated that they wish to receive the minimum amount.
- Clients who nominated to receive an amount above the minimum in 2011/12 will generally continue to receive this amount (subject to the minimum/maximum levels)
25% reduction of pension minimums for 2012/13
As you may be aware, the Government had provided temporary relief from the minimum pension payment requirements in the form of a 50% reduction. This was introduced as a temporary response to declining market conditions being experienced at that time. For 2012/13, this relief will remain at a 25% reduction in minimum pension payment amounts. The Government announced that minimum pensions will revert to ‘normal’ levels from the 1st July 2013 onwards (please see Budget announcements outline on this website for further details).
Pension Plan & Non Commutable Pension Plan clients
The minimum pension payment amount will reduce by 25% for our clients who have nominated that they wish to receive the minimum amount. Clients who nominated to receive an amount above the minimum in 2011/12 will continue to receive this amount (subject to the minimum/maximum levels determined on 1 July 2012).
Term Allocated Pension Plan (TAPP) clients
The pension payment amount will continue at the 25% reduced amount for our clients who elected to receive the reduced amount in 2011/12. Amendments within the set limits can be requested.