Minimum payment amount for an account‑based pension
Schedule 5 Minimum payment amount for an account‑based pension
(regulation 1.08A)
1 (1) Subject to clauses 2, 3, 3A and 3B, the amount of payments mentioned in paragraph 1.07(3D)(a) is the amount worked out using the formula:
Start formula Account balance times Percentage factor end formula
In subclause (1):
account balance means:
the amount of the pension account balance:
on 1 July in the financial year in which the payment is made; or
if that year is the year in which the pension payments commence—on the commencement day; or
if the amount of the pension account balance under paragraph (a) is less than the withdrawal benefit to which the beneficiary would be entitled if the pension were to be fully commuted—the amount of the withdrawal benefit.
percentage factor means the percentage factor specified in the item in the table in clause 4 that applies to the beneficiary because of the beneficiary’s age on:
1 July in the financial year in which the payment is made; or
if that is the year in which the pension payments commence—the commencement day.
2 For the determination of the minimum total payment in the year in which the commencement day of the pension occurs, if that day is a day other than 1 July, the applicable value specified in column 3 of the table must be applied proportionally to the number of days in the financial year that include and follow the commencement day.
3 If the commencement day of the pension is on or after 1 June in a financial year, no payment is required to be made for that financial year.
3A For the financial years commencing on 1 July 2008, 1 July 2009, 1 July 2010, 1 July 2019, 1 July 2020, 1 July 2021 and 1 July 2022, the amount of payments is half of the amount worked out using the formula in clause 1.
3B. For the financial years commencing on 1 July 2011 and 1 July 2012, the amount of payments is 75% of the amount worked out using the formula in clause 1.
4 An amount determined under this Schedule is to be rounded to the nearest 10 whole dollars. If the amount ends in an exact 5 dollars, it is to be rounded up to the next 10 whole dollars.
Table
Item | Age of Beneficiary | Percentage factor |
|---|---|---|
1 | Under 65 | 4 |
2 | 65 — 74 | 5 |
3 | 75 — 79 | 6 |
4 | 80 — 84 | 7 |
5 | 85 — 89 | 9 |
6 | 90 — 94 | 11 |
7 | 95 or more | 14 |
This Act’s bill:Explanatory statement
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