In March 2020, the Australian Government passed legislation that temporarily reduced minimum drawdown requirements by 50% for account-based pensions and similar products, to assist retirees during the financial market volatility caused by COVID-19.
This reduction was for the remainder of the 2019/20 financial year, the full 2020/21 and 2021/22 financial years and has now been extended for the 2022/23 financial year.
Eligible account types for LGIAsuper members are Allocated Pension, Term Allocated Pension, and Transition to Retirement Pension.
The minimum drawdown requirement is the minimum amount that must be withdrawn from your account each financial year – LGIAsuper refers to this as the minimum pension payment amount.
This amount is calculated using a minimum drawdown rate – LGIAsuper refers to this as the minimum pension factor.
The temporary reductions to this factor are listed in the table below.
|Temporary reduction to minimum pension factor|
|Your age||Default minimum pension factor (% per annum)
||Reduced minimum pension factor for 2019/20, 2020/21, 2021/22 and 2022/23 (% per annum)|
This information temporarily replaces the minimum pension factors listed in LGIAsuper’s Pension accounts Product Disclosure Statement (PDS) issued 1 July 2019.
Refer to the table above to find the minimum pension factor for your age on 1 July of the current financial year.
To calculate your new minimum pension payment amount, you can apply this percentage to your Pension account balance on 1 July of the current financial year. If your Pension account was opened after 1 July this financial year, use your opening account balance for this calculation.
You can update your regular pension payments online. Follow these steps to update your account:
You can also call us on 1800 444 396 to make the change. Please be aware that during the current situation we are experiencing high demand for telephone support with long call waiting times.