Pension Income Payments
How a Pension is paid
You have the flexibility to choose to have your pension income payments paid fortnightly, monthly, quarterly, half yearly or yearly.
You can choose up to two bank accounts held in your name (or held in joint names with another person) for your pension to be paid to by direct deposit.
Pension payments (excluding fortnightly payments) will be made on the 10th or 25th day of the relevant month. Fortnightly payments will be made every second Thursday. Where the usual payment date falls on a non-business day (within NSW), pension payments will be made on the previous business day.
If you do not make a choice, you will receive your payment on a monthly basis, commencing on the next available date.
How much can be taken out from a Pension account
You can choose from one of the following pension payment amount options:
| Payment Amount |
NSF Super Pension |
NSF Super Pre-Retirement Pension |
| Minimum |
Depends on age, see 'Minimum pension income payment' table
below |
| Maximum |
Not applicable as no
maximum applies |
10% - see 'Maximum pension income
payment' below |
Other selected
amount
|
Must be at least the
minimum |
Must be within the minimum and
maximum limits
|
If you do not make a choice, you will receive the applicable minimum level of payment.
You can vary the amount and frequency of your pension payments at any time throughout the year, as long as you remain within the prescribed limits.
Minimum pension income payment
The table below shows the percentages that are used to calculate the minimum pension income amount each year:
| Age |
Minimum annual payment
(% of account balance)
|
| Under 65 |
4% |
| 65-74 |
5% |
| 75-79 |
6% |
| 80-84 |
7% |
| 85-89 |
9% |
| 90-94 |
11% |
| 95 or over |
14% |
Please note: for the 2011/12 financial year the minimum level of annual pension payment has been reduced to 75% of the percentages listed above (i.e. for those under age 65, the minimum would reduce to 3% in 2011/12).
Maximum pension income payment
There are no maximum payment limits for the NSF Super Pension. The NSF Super Pre-Retirement Pension has a maximum payment limit of 10% of your balance per financial year.
How the minimum and maximum income payment is calculated
The minimum and maximum pension income amounts are calculated based on your opening pension account balance and then the withdrawal balance as at 1 July each year, and rounded to the nearest $10.
Your minimum and maximum limits will be recalculated each year, based on your age and withdrawal balance as at 1 July.
If you request a pension payment amount outside of either the minimum or maximum limits, we will adjust your payments, as required.
Examples
Bob is age 63 and starts an NSF Super Pension on 1 July 2012 with $200,000. He wishes to draw the minimum annual payment, which is $200,000 x 4% = $8,000. So Bob can choose to take a minimum payment of $8,000 in 2012/13.
Sally is age 56 and has an existing NSF Super Pre-Retirement Pension, with a withdrawal balance of $380,000 as at 1 July 2011. She wishes to draw the maximum annual payment, which is $380,000 x 10% = $38,000. So Sally can choose to take a maximum payment of $38,000 in 2011/12.