Commencing a new pension with additional funds

Your client can add more funds into their pension account in a process called a Pension Update. This means the old pension is stopped, and a new pension will commence with the additional funds. 
The account number and personal details, including transaction details and fees, will remain the same.

Eligibility for Pension Update

To use the Pension Update option, your client must add a minimum of $500 to the new account. 

They can do this by way of contribution, rollover from another super fund or transfer from another account within the same fund.

Instructions required to request a Pension Update

To add funds to a pension account you will need to fill in a Pension Update Request Form. 

To view forms and other guides and flyers, go to Adviser Tools.

Processing times for a pension update

Depending on the specific scenario, it can take up to 15 business days for a pension update to take place. There are several steps that must be completed, and individual circumstances will affect the timeframe of each request, as outlined below.

Processing times begin only when we’ve received all necessary requirements for a request. To avoid delays, please ensure you’ve completed all forms and uploaded supporting documents before submitting. 

Pension update request with direct debit

Expected timeframes: 8-10 business days

  • When we receive a direct debit request as part of your application, it’s generally actioned on the same day and set to run overnight
  • We expect to receive the funds within 5 business days
  • If the direct debit dishonours, this will add additional time to the request
  • Once the funds are received, we’ll complete the pension set-up
  • Where a tax deduction is required on a personal contribution, the time it takes to finalise your account opening could increase. 

Pension update request with a Rollover Authority Form (*Macquarie initiated rollovers only)

Expected timeframes: around 5 days, but up to 15 business days depending on the external platform.

  • Where you would like us to action a rollover on your behalf, please ensure you submit a Rollover Authority Form
  • Rollover requests require us to liaise with third parties, like other platforms or registries. Third parties may have different cut-off and processing timeframes. Any delays in receiving the information required will impact the time it takes to complete a request
  • SIS regulations require rollovers to be actioned within 3 days of receipt. If you can see online funds have not been received yet, it’s best to check with the other institution as they could require further information from the client.

Pension update with asset transfer(s)

Expected timeframes for ASX: 8 to 10 business days

Expected timeframes for Managed Funds: 10 to 15 business days

  • As transfer requests are often dependent on third parties such as share registries, platform providers or custodians and fund managers, it can be difficult to provide precise timeframes for transfers
  • These third parties may have different requirements and cut-off times to us, which will impact the time it takes to complete the request
  • It’s best to check with the external institution if you can see on Adviser Online that the assets haven’t been received, as they could require further information
  • For more information about asset transfers, see What is required to transfer assets in or out of my client’s Macquarie Wrap account.

Important information

  • Items received on non-business days, national public holidays or banking holidays will be processed the following business day
  • Please refer to the important information and terms and conditions on the form for the request you’re submitting. Additional supporting documents may be required for some request types or circumstances.

Requirements for updating a pension

  • All funds being added to the account will need to be cleared. This takes approximately two business days once received.
  • Any investment transactions that are still in progress or placed while the update is in progress will need to settle - including buy, sell, and switch transactions; dividend/distributions; and any automated plans. Any pension payments and fee payments that are in progress will also need to be completed.
  • If your client hasn’t met their minimum pension requirements for that financial year, the pro-rata minimum payment will need to be paid.
  • A new minimum pension will need to be calculated, which will be pro-rated for the remainder of the financial year.

Additional pension payment before a Pension Update

Because of the nature of a Pension Update – the old pension is stopped and a new one created – it’s necessary to pay out the minimum pension before stopping it. This is to ensure the account receives the correct tax treatment as an income stream. 
The payout is calculated as a pro-rata pension payment to the minimum amount up until the date of the Pension Update. 
The new account will then be updated with the additional funds and the old pension balance less the minimum payout.

Important information about Pension Update

  • A Pension Update may affect Centrelink income support recipients and Commonwealth Seniors Health Card holders, as any income test grandfathering will be lost.
  • Pension Update restrictions occur during the first week of July during the escalation process where all pensions are recalculated. The request will be processed once this has been completed.
  • Pension Updates aren’t available for Term Allocated Pensions.
  • A Pension Update can be used to convert a Transition to Retirement (TTR) pension to a standard pension. However, this isn’t available to convert a standard pension to a TTR. You’ll need to open a new TTR pension account and request to switch the funds from the existing pension.
  • Any pension payment made on the account before the update doesn’t count towards the minimum pension requirements of the newly commenced pension.
  • If a Pension Update is submitted for a closed product, the existing Consolidator/Manager account type will be retained when the Pension Update is processed. If you want to change your client’s pension account to a different Macquarie product, you can do so by using the online conversion form.

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