Restricting Flexi Pension under the TTR rules for DBD members
During periods when the Vested Benefit Index is under 100% the Trustee can restrict a DBD member's access to a Flexi Pension taken under the transition to retirement (TTR) rules.
From July 2009, a DBD member wanting to use all or part of their defined benefit component to commence a Flexi Pension under the TTR rules must satisfy the Trustee that they are genuinely reducing their working hours by at least 20%.
To verify the reduction in working hours, a member must have their employer attest to the reduction in working hours using the Transition to retirement pension attestation form on the UniSuper website (www.unisuper.com.au).
Please note, if you use all or part of your defined benefit component to commence a Flexi Pension under the TTR rules, you will cease to be a DBD member and become an Accumulation 2 member. Any residual defined benefit component will be transferred to an Accumulation 2 account and all future employer and member contributions will be paid into this Accumulation 2 account. This means that all future contributions, together with any residual defined benefit component that is transferred, will be invested in the investment option you have chosen for your accumulation component and will be subject to investment market volatility. If you have not chosen an investment option, the Accumulation 2 account will be automatically invested in UniSuper’s Balanced option – the Fund’s default investment option.
If you are not reducing your working hours by at least 20% but still want access to a Flexi Pension under the TTR rules, you can commence one using all or part of your accumulation component.
