Pension recalculations

In the first week of July every year, we recalculate the pension amounts for the new financial year. During this time, which we also refer to as ‘the pension freeze’ or ‘pension escalation’, you won’t be able to make any changes online to pension payments.

Please review the newly calculated amount straight after our recalculation period to ensure it meets your client’s expectations. This may help avoid the need for an ad hoc payment request after your client receives their first pension payment in the new financial year.

To offer clients more flexibility, you can now select a specific payment date for their regular pension payments, regardless of frequency. For more information, visit Help Centre.

What happens when pensions get recalculated?

Pensions are calculated based on your client’s age, account balance as of 1 July, payment frequency and any indexation elections.

After the recalculations, you might notice that your client’s regular pension payment amounts have changed.

We encourage you to ensure that your client’s first pension payment in the new financial year aligns with their expectations.

What you need to do

1. Before 1 July

   Review your client’s pension payment details and make any changes for the remainder of the financial year in Adviser Online before 30 June.
   1. Log in to Adviser Online
   2. Hover over Clients  and click  Accounts  on the menu
   3. Select your client's Wrap account
   4. Select Account details and go down to Pension details
   5. Select Update recurring pension payments
   6. Update the payment frequency, next payment date, payment amount and/or indexation
   7. Once you’ve made at least one update, select  Review
   8. Confirm your updates and select  Submit.
      • For advisers with ‘Ultimate’ security preference elected, you will be required to Authenticate the update to your client’s pension payments before the change is authorised.
   9. Your Recurring pension payments update should be complete to view in Request Centre and will update overnight on the Account details  screen.

2. During pension recalculations

   1. No changes can be made to pension accounts online during the pension freeze. Any pension payments or lump sum payment requests received during this time will be processed after the pension recalculations have been finalised.
   2. If your client’s pension payment is due during ‘the pension freeze’, the pension payment will be processed on time, but the amount will be the same as the preceding pension payment.

3. After the recalculations

   1. The pension payments will be adjusted according to your client’s pension indexation option and payment frequency for the new financial year.
   2. Review your first pension payment in the new financial year.
   3. If your client is getting a pension payment in July, you may only have a few days to review the amount and make changes if required.
   4. To give your clients more flexibility, you can now select a specific payment day for their regular pension payments.