Minimum Pension Limit for 2009/10

As part of the Budget 2009 changes, the Government announced that the 50% concession in the minimum pension limit which applies to account-based, transition to retirement, allocated and market linked pensions will continue for 2009/10.

The extension of the 50% relief has now been enacted by Superannuation Industry (Supervision) Amendment Regulations 2009 (No 4).

For account-based and transition to retirement pensions the minimum pension limit for 2009/10 depends on the age of the member at 1 July 2009, and are as follows:

Under 65	2%	(normally 4%)
65 to 74	2.5%	(normally 5%)
75 to 79	3%	(normally 6%)
80 to 84	3.5%	(normally 7%)
85 to 89	4.5%	(normally 9%)
90 to 94	5.5%	(normally 11%)
95 and over	7%	(normally 14%)

If the account-based or transition to retirement pension commences after 1 July 2009, the minimum pension limit for 2009/10 is pro-rated.

If the pension commences on or after 1 June 2010, then no pension payment is required in respect of the 2009/10 financial year.

For allocated and market linked pensions, the minimum pension limit for 2009/10 is 50% of the limit which would normally apply to those pensions.