RI Term Allocated Pension

Fees and other costs

Below is a general guide to the fees and costs¹ for an RI Term Allocated Pension account. Other fees, such as activity fees or fees for personal advice and insurance, might be charged, depending on the type of advice or insurance you choose.

We do not charge entry and exit fees.

1 If your account balance is less than $6,000 at the end of the financial year, certain fees and costs charged to you in relation to administration and investment are capped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.
2 Investment fees and costs include an amount of 0.00% p.a. to 0.07% p.a. for performance fees. For a detailed breakdown of these fees, please call your Member Services Centre on 13 43 72.
3 These figures include estimates.

Your income options

Your pension account is market-linked. This means it generates an annual income which changes depending on the performance of your investment option and the term of your pension.

When you opened your RI Term Allocated Pension account, you decided how long your income would last by choosing a term within Australian Government limits.

You can’t change the length of your term, but you can:

• Choose to be paid monthly, quarterly or annually 
  You can change how often you’re paid at any stage. Please call us on 13 43 72 for a copy of the payment variation form.
• Choose your investment option 
While you can’t change your term, your investment option could make a difference to how much you earn each year and over the term of your pension. You can choose which option or type of assets your pension is invested in based on different levels of expected risk and return.

Learn more about your investment options or find your investment style.

How your income is calculated

At the start of each financial year, we work out your annual income by dividing your account balance on 1 July by the Pension Payment Factor. This is the rate that corresponds with the number of years remaining in your pension term. When your pension reaches the end of its term, we’ll pay you any balance remaining in your account.

If you have any questions about how your RI Term Allocated Pension works, please call us on 13 43 72.

RI Term Allocated Pension and tax

If you already have a RI Term Allocated Pension account, you can save on tax in the following ways:

• Your regular income from your pension is tax free if you’re 60 or over
• Investment earnings in your pension account are tax-exempt

These benefits are also available with our RI Allocated Pension, which is currently open to new members.

Here’s a summary of how tax applies to your RI Term Allocated Pension account.

Different parts of your pension are taxed differently

Your RI Term Allocated Pension account may include two different parts or 'components'. Each part is taxed differently, depending on where the funds come from. You might have:

1. A tax-free component
   The tax-free part of your super benefit that was transferred to your pension account. You don’t pay tax on this amount. For example, it would include personal contributions made to your super, that you didn’t claim as a tax deduction. If you transferred from West State Super or Gold State Super, it would also include any part of your benefit that was taxed at 47% because your balance was above the untaxed plan cap.
2. A taxable component
   The taxable part of your super benefit that was transferred to your RI Term Allocated Pension account. For example, it would include employer and salary sacrifice contributions.

To find out more about the tax components of your account, please call your Member Services Centre on 13 43 72.

Your regular income is drawn from both components

If your pension account has a tax-free and taxable component, your regular income payments will include a proportional amount drawn from each component, based on the total value of your pension.

Here's an example of how income payments are taxed according to the components of your account.

For more information about how your RI Term Allocated Pension is taxed, please call your Member Services Centre on 13 43 72.

Important documents