To reduce the impact of the financial market downturn on retirement savings that are in the drawdown phase (e.g. account-based pensions), the Government is temporarily reducing superannuation minimum drawdown requirements by 50% for the 2019/20 and 2020/21 financial years.
These reductions benefit retirees with account-based pensions and similar products by reducing the need to withdraw funds and sell assets to fund those withdrawals at a time when returns are negative or low. The reduction applies immediately for the 2019/20 and 2020/21 financial years, as below:
The reduced minimum drawdown rates were applied on Wednesday 25 March 2020 and took immediate affect for the 2019/20 and 2020/21 financial years. The new rates will be used for any requests made to reduce pension payments to the minimum from 25 March 2020.
You can change you pension payment details in the ‘Pension Payments’ section of your online account. To login, please visit eisuper.com.au/login. You can also complete a 'Change your Pension Payment’ form and return it to us by uploading it into your online account or by posting it to EISS Super, GPO Box 7039, Sydney NSW 2001.
When making a change to your pension payments, please consider your payments to 25 March 2020 as you may have already exceeded the reduced minimum drawdown amount. If you have, and you select ‘Minimum annual amount permitted’ we will defer your next payment until the 2020/21 financial year.
If you’ve already exceeded the reduced minimum drawdown amount and want to continue to receive income payments for the remainder of 2019/20, please select ‘Nominated amount’ and confirm the annual amount you wish to receive.
If you’ve already exceeded the reduced minimum drawdown amount you can also elect not to receive any further payments from your pension account this financial year. However, please note you cannot put any funds you have already been paid above the new minimum back into your pension account.
We will endeavour to process requests as soon as they are received, but due to high demand, this may take a little longer than normal.
To find out more about the Government’s economic response to Covid-19, visit treasury.gov.au/coronavirus
If you need advice about whether to change your pension payments, please speak to one of our Financial Planners.
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