Minimum pension payment levels reverted to normal from 1 July 2010. Pension members who have been receiving pension payments that are less than the normal minimum (due to the temporary halving of the minimum level) will be required to take the minimum in 2011 or have the fund become non-complying. The externally managed funds will probably deal with this automatically. All pension members are likely to receive a pension review soon, which will detail their pension payments for the new financial year and give them an opportunity to change the amount within the new 2010/11 limits. The normal minimum pension rates that will apply to pensions after 1 July 2010 are:- | Age | | | % acct | To 64
65-74
75-79
80-84
85-89
90-94
95+ | | | 2%
2.5%
3%
3.5%
4.5%
5.5%
7% |
If you operate a self-managed superannuation fund paying a pension, have you paid out the minimum in 2010? The cost of failing can be significant.
23rd-June-2010 | 