The 50% reduction in minimum pension payments for the 2008/09
year has now been legislated.
The Superannuation Industry (Supervision) Regulations
2009 (SIS Regulations) were amended on 13 March 2009 to
provide for a 50% reduction in the minimum drawdown amount for many
pensions in the 2009 financial year.
This amendment applies to account based pensions, allocated
pensions and market linked pensions, including where these pensions
started as a transition to retirement type of pension.
However, it does not apply to flexi pensions, complying fixed
term pensions or complying life time pensions.
Despite these amendments to the SIS Regulations, you will need
to check the trust deed for your superannuation fund to ensure it
permits the superannuation trustee to make reduced minimum
If you have a Cooper Grace Ward self managed superannuation fund
trust deed, you will be able to take advantage of these
However, some superannuation trust deeds specify the minimum
payment percentages. These deeds must be varied to permit the
superannuation trustee to pay a reduced amount.
To take advantage of the relief, it is also important to make
sure the pension documentation sets the minimum drawdown amount by
reference to the minimum amount specified in the SIS Regulations,
and not by reciting the minimum percentages.
These amendments do not alter the maximum drawdown amount
permitted by the SIS Regulations.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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