As part of their response to the evolving coronavirus situation, the Federal Government has announced a 50% reduction in the pension minimum requirements for the 2019/20 and 2020/21 financial years.
What you need to know
New pensions: The reduced minimums are being applied to all new pensions commenced on and from 26 March 2020.
Existing pensions: We’ve reduced the minimum payment requirement online.
While we’ve reduced the minimum payment requirement, please note that we haven’t adjusted any pension payment amounts for your clients. Unless they’re changed online, pension payments for the remainder of the 2019/20 financial year will remain at their current levels (this includes any future ongoing or annual payments).
If you would like to update your client’s pension payment amount, you can do so by:
- logging in to Adviser Online
- under the ‘Clients’ tab in the side navigation, select ‘Wrap account administration’
- select to ‘maintain a pension account’
- once you’ve searched for your client, select ‘amend annual pension details’
- click on ‘modify’
- make the required changes to the pension amount and select ‘continue’ in the bottom right hand corner. You’ll then enter your Macquarie ID and password to finalise the request.
You can update the 2020/21 pension payment amounts for your clients in July 2020.
We’re contacting your clients
We’re getting in touch with your clients to let them know about these product changes and asking them to contact you should they wish to change their pension amount. If you have clients in our Term Allocation Pension (TAP) product, it’s important to note they’ll be getting a unique notice.
We’re committed to supporting you and your clients through this challenging and uncertain period. If you’d like to discuss the above or how we can provide ongoing support, please don’t hesitate to contact us.