1 July 2010
The Federal Government has extended the reduced minimum draw down requirement currently 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 Percentage Factor (%) |
| 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 more | 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.