Who can apply for a Westscheme Pension?
You can start a Westscheme Pension if you have superannuation savings or are eligible for certain employer termination payments, and:
• You have reached 55 years of age and are either still working or have never worked. In this case you are eligible to purchase a ‘Transition to Retirement’ pension; or
• You have reached 55 years of age, retired and declare that you do not intend to return to the workforce; or
• You have reached 60 years of age or more and have finished working for your current employer
(you may then return to work if you wish); or
• You have reached 65 years of age (retired or not);
• You have ceased work due to permanent incapacity.
Can I get a Westscheme pension before I retire?
If you have turned 55 years of age and want to keep working, you can now access your super under the Transition to Retirement (TTR) rules. The TTR rules allow you to receive regular payments from your superannuation fund, without the need to retire. So, you may be able to reduce your working hours without having to reduce your income.
How will a Westscheme Pension help me?
A Westscheme Pension offers you a regular, flexible and tax-effective income. As your savings stay with Westscheme, you continue to enjoy the benefits of your Westscheme membership, including retirement seminars, personal customer service and being with an organisation run with the philosophy of all profits to members.
You may also enjoy some of the following tax related benefits associated with superannuation pensions:
• The potential to reduce your income tax if transitioning
to retirement (refer to Westscheme Pension Member Handbook)
• Investment earnings on a Pension account are totally tax-free
• If you’re 60 years of age or older your pension payments will be tax-free and will not form part of your assessable income for income tax purposes
• If you are 55 to 59 years of age your pension payments will be taxed, but you’ll be eligible for a 15% tax offset on any Taxable Component.
What do I need to do before starting a Westscheme Pension?
• Get professional financial advice;
• Read the Westscheme Pension Member Handbook
• Get all your financial affairs in order. You cannot add to a pension once it has been created. All superannuation assets need to be identified, reviewed, sold or consolidated if required, prior to starting a pension.
How do I get my Westscheme Pension started?
The Westscheme Pension is an account-based superannuation pension. To open your pension account you need:
• A completed Westscheme Pension Application form
(found in the Westscheme Pension Member Handbook/Product Disclosure Statement);
• A minimum amount of $10,000 (there is no maximum limit); and
• To provide Westscheme with your proof of identity documents.
You can only open a Westscheme Pension with ONE superannuation amount or Directed (Employment) Termination Payment. Acceptable superannuation benefits are amounts:
• Already in your Westscheme Super account; or
• In other superannuation funds, approved deposit funds or retirement savings accounts (and which are eligible to be cashed or meet the ‘Transition to Retirement’ pension rules).
How much pension will I get?
Minimum annual pension payments are set by the government according to your age, with no maximum limit except for transition to retirement pensioners, who are restricted to 10% of their balance.
You can choose to have your Westscheme Pension paid to your nominated bank account on a half-monthly, monthly, quarterly, half-yearly or yearly basis. You can select the minimum annual payment or any greater amount, provided you are not subject to the Transition to Retirement pension rules.
Can I withdraw a lump sum payment from my Westscheme pension account?
Yes, lump sum amounts may be withdrawn from a Westscheme Pension at any time. A $1,000 minimum draw down limit applies, and a $50 fee is charged for each lump sum drawn down.
If your Westscheme Pension is subject to the ‘Transition to Retirement’ rules, lump sum draw-downs are not generally available until you have turned 65 years of age or, retired fully from the work force.
What fees and charges will I have to pay?
The Westscheme Pension has no establishment or termination fees. There are ongoing account-keeping fees of $6.30 per week (reviewed each 1 July) plus investment management fees that vary depending on the investment option you have chosen.
Other one off fees (such as lump sum draw down fees) may apply.
For details see the Pension Member Handbook.
Can I choose how my Westscheme pension is invested?
Yes, as a Westscheme member you can choose from seven investment options when you fill in your Pension Member application form. If no selection is made, your Westscheme Pension will be invested in the Westscheme ‘Retirement Selection’ investment option.
How does the 2010/11 extended pension draw down relief work?
The Federal Government has extended the reduced minimum draw down requirement provided for pensioners with account-based and market-linked pensions.
The relief, granted until the end of 2010/11 financial year, extends the previous relief: a 50 per cent reduction in the required minimum annual payment from pension accounts.
The reduced draw down requirement is a result of the global financial crisis that saw many pension account balances diminish. It is hoped the extension of the relief will help retirees to recoup the capital losses on their pension accounts as share markets recover over time.
The minimum percentage factor of a pension account balance (such as the Westscheme Pension) that must be drawn down by the end of the 2010/11 financial year is:
| Your Age* | Minimum % Factor in 2010/11 Financial Year |
| Under 65 years | 2.0% |
| 65-74 | 2.5% |
| 75-79 | 3.0% |
| 80-84 | 3.5% |
| 85-89 | 4.5% |
| 90-94 | 5.5% |
| 95 or over | 7.0% |
*is your age when your pension starts or as at 1 July 2010.
Where your pension starts on a day other than 1 July; the percentage factor shown is applied proportionally to the number of days remaining in the 2010/11 financial year, including the day it started.
Westscheme pension members who wish to take advantage of the optional relief should complete and return to Westscheme a signed Pension Variation Form as soon as possible.
Download the Pension Variation Form here.
Once the completed Pension Variation Form has been received by Westscheme, the pension payments due to the pensioner for the remainder of the financial year will be adjusted accordingly.
Westscheme pension members who do not wish to take advantage of the relief being granted, do not need to take any action.
What happens to my pension if I die?
Generally you have two options when you first establish your pension. You can choose to have the pension paid to an eligible person as a reversionary pension on your death or to have your pension balance paid as a lump sum amount to your beneficiaries.