Retirement Income Term Allocated Pension

A Retirement Income Term Allocated Pension provides you with a regular income stream for a certain period of time that you choose.

This income option was closed to new members in 2007.

Closed to new members

Retirement Income Term Allocated Pension is now closed to new members.

Tax benefits

Your Retirement Income Term Allocated Pension account earnings are exempt from tax, so it’s a tax-effective investment if you already have an account.

Investment plan

Choose the type of assets your super is invested in through your investment plan.

Use Member Online to manage your account.

Login or register now

We’re here to help. Call us on 13 43 72 if you have any questions about your account.

  • Overview

    If you already have a Retirement Income Term Allocated Pension, you can:

    Your account is linked to the investment market, so your annual income will depend on the performance of your investments and the term of your pension.

    You can’t make lump-sum withdrawals except in special circumstances - please contact us for more information.

  • Your investment options

    We invest your super across a range of different asset classes to give you the best chance to grow your retirement savings. You can have your super automatically invested in the Balanced plan - or you can choose your investment plan. This means you can:

    • Choose the asset classes your super is invested in, from Shares to Cash.
    • Choose how much of your money is allocated between the asset classes.
    • Change your investment plan to suit your retirement savings goals.

    Your super might be one of the biggest investments you’ll ever make. The investment plan you choose now can make a difference to how much you earn each year and over the term of your pension.

    Different assets can create different returns

    Your Retirement Income Term Allocated Pension offers you a range of investment plans. These plans invest in different assets, with the returns linked to how the financial markets perform.

    You can choose to invest in a range of different asset class allocations through our Readymade plans or create your own combination of asset classes with Mix Your plan.

    You can choose a Readymade plan

    There are four Readymade plans with different levels of risk and return expectations.

    Retirement Income Term Allocated Pension Readymade plans

    Investment plan

    Expected risk/return profiles

    Growth plan

    High risk and return

    Balanced plan

    Medium to high risk and medium return

    Conservative plan

    Low to medium risk and low return

    Cash plan

    Very low risk and low return

    For more details, please see investment options - Retirement Income Term Allocated Pension.

    You can choose the Cash plan and another Readymade plan

    This means some of your money will be invested in the Cash plan and the rest of your money in another Readymade plan. You can have your pension paid from the two plans in a certain order – for example, the Cash plan first. Or you can choose a percentage of your pension payment to be taken from each investment plan. If there are not enough funds in your chosen plan, then the rest of your payment will be taken from your other plan.

    The amount of money in each investment plan will reduce as your pension payments are made. From time to time, you might like to review the amounts in your investment plans and transfer money between them.

    You can Mix Your plan

    There are five Mix Your plan options which allow you to select your own mix of asset classes.

    Retirement Income Term Allocated Pension Mix Your plan

    Investment plan

    Expected risk/return profiles

    Australian Shares

    Very high risk and high return

    International Shares

    High risk and return

    Property

    Very high risk and high return

    Fixed Interest1

    Medium risk and low return

    Cash

    Very low risk and low return

    You can choose the order or the percentage of your pension to be paid from each of your asset classes. To maintain your chosen percentage, you’ll need to check there is enough money invested in your asset classes. If there are not enough funds in one of more of your asset classes, the rest of your payment will be drawn from across your other asset classes.

    You may also need to make changes to your Mix Your plan to make sure the percentage held in each asset class remains the same over time. Find out more about how Mix Your plan works.

    For more details, please see investment options - Retirement Income Term Allocated Pension.

    Need more help with your investment plan?

    To change your investment plan, download the investment choice - Retirement Income Term Allocated Pension form.

    1 Mix Your Plan Fixed Interest invests in Investment Grade Bonds.

  • Fees and other costs

    We may make changes to the fees we charge

    From time to time, we might need to change our fees to make sure the structure and level of fees is appropriate, including any extra costs from government taxes or statutory charges.

    We’ll always let you know about any changes through our website or your Member Statement. If the change is an increase in fees or charges, we’ll give you at least 30 days’ notice.

    Fees are charged in different ways

    Below is a general guide to the fees and costs for a Retirement Income Term Allocated Pension account.

    Other fees, such as activity fees or fees for personal advice, might be charged depending on the activity or advice you choose.

    Retirement Income Term Allocated Pension fees and other costs

    Type of fee or cost

    Amount

    How and when paid

    Investment fee

    Nil

    Not applicable.
    Costs incurred that relate to the investment of assets and that are not otherwise charged as an administration fee or other fee mentioned in this table are deducted from the fund assets before the daily unit price is calculated.

    Administration fee

    The fee for managing your account

    0.70% p.a.

    Not deducted from your account as a fee, but is deducted from investment returns before earnings are applied to your account

    Buy-sell spread

    The fee for transaction costs relating to the purchase and sale of our assets

    Nil

    Not applicable

    Switching fee

    The fee for changing your investment plan

    Nil

    Not applicable

    Exit fee

    The fee for making a withdrawal

    $51

    This fee doesn’t apply for your regular pension payments. If you’re eligible to make a lump-sum withdrawal (in special circumstances only) or close your account, this fee will be deducted.

    Advice fees

    Advice fees relating to all members investing in Retirement Income Term Allocated Pension

    Nil

    Not applicable

    Family Law fee

    The fee to split or pay your pension account balance to your spouse

    $51

    Deducted from your account when your Retirement Income Term Allocated Pension is split or paid in full to your spouse.

    Indirect Cost Ratio (ICR)1

    The ICR includes all costs that are not deducted directly from your account.

    These include all investment costs related to managing the investments in the investment plan you have chosen.

    Estimated to be between 0.05% p.a and 0.43% p.a. of the value of your investment, depending on which investment plan you choose2

    Not deducted from your account as a fee, but is deducted from investment returns before earnings are applied to your account

    1 The Indirect Cost Ratio (ICR) includes all of the investment costs and any additional underlying costs relating to your investment. It is an annual percentage fee which covers the cost of managing the fund's investments including a proportion allocated to risk reserves. Retirement Income Term Allocated Pension's ICR is not fixed, and is reviewed periodically and adjusted to take into account prevailing investment expenses. The actual ICR can only be determined at the end of each financial year.
    2 The Indirect Cost Ratios for Retirement Income Term Allocated Pension's other investment plans are different. They vary depending on the asset allocation and complexity of the plan.

  • 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 plan and the term of your pension.

    When you opened your Retirement Income Term Allocated Pension account, you decided how long your income would last by choosing a term within Commonwealth government limits.

    You can’t make lump-sum withdrawals from your account (except under special circumstances) or 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. Simply download and complete a payment variation form.
    • Choose your investment plan. While you can’t change your term, your investment plan could make a difference to how much you earn each year and over the term of your pension. You can choose which plan 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 Retirement Income Term Allocated Pension works, please call us on 13 43 72.

  • Retirement Income Term Allocated Pension and tax

    If you already have a Retirement Income 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 Retirement Income Allocated Pension, which is currently open to new members.

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


    Different parts of your pension are taxed differently

    Your Retirement Income 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 49% 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 Retirement Income 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.

    For example, Fiona is 63 and has $250,000 in her Retirement Income Term Allocated Pension account:

    • Her $250,000 is made up of a $210,000 taxable component and a $40,000 tax-free component
    • She chooses monthly income payments of $1,600
    • Her monthly pension will be made up of the following components:

    40,000/250,000 X 1,600 = Tax-free: $256

    210,000/250,000 X 1,600 = Taxable-taxed: $1,344  

    Tax-free + Taxable-taxed= $1,600

    As Fiona is over 60 the total amount of her pension payment is tax-free.

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

  • Important documents for Retirement Income Term Allocated Pension


    Download and print forms

    You can use Member Online to update your address and contact details. If you need to access or make changes to your Retirement Income Term Allocated Pension, please use these forms.

    For information on making a withdrawal from your Retirement Income Term Allocated Pension account, please contact your Member Services Centre on 13 43 72.

Page last updated 19 June 2017