MemberOnline     

members

members
Print page

Transition to retirement

Even if your retirement is some years off, you may be able to access some of your superannuation while you’re still working.

What is transition to retirement?

Transition to retirement (TTR) is a government policy that allows you to commence an account-based pension while you are still working. It’s a great way for you to ease into your retirement and take advantage of some of the tax concessions available to pensions.

While you are still working, your employer and member contributions will continue to be paid into your UniSuper super account.

If you meet UniSuper’s TTR eligibility requirements, you can commence a TTR pension using a UniSuper Flexi Pension.

Am I eligible?

There are certain eligibility requirements to commence a Flexi Pension under TTR rules:

  • You must have reached your preservation age (currently 55) but be under 65 and still be in the workforce (the government has not specified the minimum or maximum hours you must work).
  • You must have a minimum investment of $25,000.

There are other eligibility requirements which depend on your membership category:

Accumulation 1, Accumulation 2 and Spouse members

Under the TTR rules, you can use all or part of your super account to commence a Flexi Pension. If you only use part of your super account, you must leave a minimum balance of $1,000 in your super account.

Defined Benefit Division (DBD) members

Under the TTR rules, you can use all or part of your defined benefit component to commence a Flexi Pension. If you wish to use all or part of your defined benefit component, you must reduce your working hours by at least 20% (see additional restrictions for DBD members below). 

If you are not reducing your working hours but still want to commence a Flexi Pension under the TTR rules, you can commence one by using all or part of your accumulation component.

If you only use part of your accumulation component you must leave a minimum account balance of $1,000 in your accumulation component. 

If you use your accumulation component to commence a Flexi Pension under the TTR rules, you will remain a DBD member and retain your defined benefit entitlements.

Additional restriction for DBD members

Under the TTR rules, only DBD members who are genuinely reducing their working hours by at least 20% are eligible to start a Flexi Pension using all or part of their defined benefit component.

To verify the reduction in your working hours, your employer must attest to the reduction in your working hours using the Transition to retirement pension attestation form.

Please note that under the TTR rules, if you use all or part of your defined benefit component to start a Flexi Pension, you will cease to be a DBD member and become an Accumulation 2 member. Any remaining defined benefit component will be transferred to an Accumulation 2 account. All future superannuation contributions will be made into your Accumulation 2 account.

The Accumulation 2 account will be invested in the investment option you have chosen for your accumulation component, and will be subject to investment market movements. If you have not chosen an investment option, your Accumulation 2 account will be automatically invested in the Balanced option – the Fund’s default investment option.

For more information, refer to the Super for Defined Benefit Division and Accumulation 2 members product disclosure statement.

Optional insurance and inbuilt benefits

As long as employer contributions continue to be made into your super account and you meet all other eligibility criteria, any optional insurance cover you have as part of your UniSuper membership will continue.

If you are DBD or Accumulation 2 member and you reduce your working hours, the amount of inbuilt death and disablement benefits you may be entitled to will be reduced.

What is the minimum and maximum annual pension income I can take?

The government sets the minimum and maximum level of annual pension income that you must receive from Flexi Pension under the TTR rules.  You must take an annual pension income at or above the age-based minimum but under the maximum.

The minimum annual pension income is the same as for a Flexi Pension which is not taken under the TTR rules.

The maximum annual pension income is limited to a maximum of 10% of your account balance at the start of each financial year.

Can I make lump sum withdrawals?

You generally cannot make lump sum withdrawals from a Flexi Pension under the TTR rules, except in limited circumstances. Please refer to the Your guide to pensions product disclosure statement (PDS) for more information.

Once you satisfy a condition of release such as permanently retiring from the workforce or reaching age 65, the restrictions associated with the TTR rules no longer apply to the Flexi Pension.

How do I apply for a Flexi Pension under TTR rules?

To apply for a UniSuper Flexi Pension, simply complete and return the following to UniSuper:


Tell me moretell me more