The Federal Government has decided to reduce by 50 per cent the minimum payment amount for 2008-2009. This will be equivalent to suspending the minimum draw down requirement for the second half of 2008-2009. For those who have already taken half of the current minimum payment for 2008-2009, a further payment will not be required until the end of the 2009-2010 year.
The valuation of minimum pensions for 2008-2009 is based on the fund's asset value as at 1 July 2008 when equity values were higher. Eligible pensions that are in existence on 1 July 2009 and those that commence in the year 2008-2009 will both benefit from this measure. The temporary relief is applicable to:
- Account-based annuities and pensions payable since 1 July 2007
- Allocated annuities and pensions
- Market-linked annuities and pensions
- Account-based and allocated pensions payable from Retirement Savings Accounts.
