To provide you with a more detailed explanation of superannuation and pension terms you may have come across in our Product Disclosure Statements (PDS)^, we have put together this summary of commonly used terms and their meanings.
There are 2 sections to this Super terms explained document:
- Glossary of superannuation terms
- Changes to Product Disclosure Statements^
- Temporary 50% reduction in minimum pension payments
Glossary of superannuation terms
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9% SG contribution
Employers in Australia are required by legislation to provide a minimum level of superannuation support for most employees. The rate is currently 9% of an employee’s ordinary time earnings, subject to a maximum earnings base of $40,170 per quarter (indexed annually to the average weekly ordinary time earnings (AWOTE) index.
Also see concessional contributions for more information about employer contributions including 9% SG contributions.
Also see super contributions.
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Account balance
This is the current value of your super or pension investment. Your account balance includes your rollovers and super contributions, less taxes, fees and costs, insurance premiums and super benefits paid. Family law payment splits, spouse contribution splits, release authorities for excess contributions tax and bankruptcy claw-back payments may also be paid from, and will reduce, your account balance. It will also reduce or increase according to market movements, which are reflected in the unit price of your investment options.
You can find the historical value of your account balance and the transactions affecting it on your half-yearly statements, via FirstNet or by calling us.
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Allocated pension
An allocated pension is also known as an ‘account-based pension’. It is paid from your account balance until it is reduced to zero. It is designed to provide you with an income stream most commonly when you retire using your retirement benefit.
However, you may also commence an allocated pension from a non-preserved cash benefit, total and permanent disability (TPD) benefit, terminal illness benefit or a death benefit. Please refer to the meaning of pre-retirement pension for information on this type of pension, payable once you reach your preservation age, because these pensions have different income and withdrawal rules.
There is no maximum pension payment amount you must receive from an allocated pension and you may also withdraw additional lump sum payments (tax may apply). Your minimum pension payment amount is worked out each year. It is calculated by multiplying your account balance as at 1 July (or the commencement of your pension) by a percentage factor depending on your age.
The government has announced that the current 50% reduction in the minimum pension payment amount levels for account-based, allocated and market-linked pensions will be extended to the 2010/2011 financial year. The government has stated that the necessary legislative amendments will be made as soon as possible in the 2010/2011 financial year to reflect this change.
This means that if you have selected the minimum annual pension payment amount, we expect we will revert to pay you the standard minimum pension payment amount set out in the Table 1 below.
We do encourage you to speak with your financial adviser before you make an investment decision about your pension payment amount.
Table 1
|
Percentage factor* |
Age |
Standard minimum |
50% reduction for 2010/2011 financial year** |
| Under 65 |
4% |
2% |
| 65 - 74 |
5% |
2.5% |
| 75 - 79 |
6% |
3% |
| 80 - 84 |
7% |
3.5% |
| 85 - 89 |
9% |
4.5% |
| 90 - 94 |
11% |
5.5% |
| 95 or more |
14% |
7% |
If you commence your pension on or after 1 June, no minimum pension payment amount is required to be made for that financial year. Otherwise, we must pro rata your minimum pension payment amount for the number of days remaining in the financial year.
Example
Ben invests $200,000 into FirstChoice Allocated Pension on 1 July 2010. He is age 65, so his minimum pension payment amount is 2.5% of his account balance. As a result, his minimum pension payment amount for 2010/2011 is:
- minimum pension payment amount = $200,000 x 2.5%
- therefore, Ben’s minimum pension payment is $5,000 for 2010/2011.
* From time to time, the Government may change these pension minimums. You should refer back to this ‘Super terms explained’ page, or call us for a copy, for the most up-to-date information on the pension minimums that apply. We may adjust your minimum pension payment amount (or maximum for pre-retirement pensions) in line with these changes.
** If you have selected to receive the minimum pension payment amount, we will automatically apply the temporary 50% reduction in the 2010/2011 financial year. Please read information above the table for more information.
When you commence your allocated pension, you may nominate a reversionary beneficiary to receive your pension when you die. Alternatively, you may complete a pension death nomination form at any time, nominating which of your dependants or legal personal representative you would like to receive your remaining account balance on your death as a death benefit.
If you are age 60 or over no tax is payable on your pension payment amounts. Otherwise, see benefits tax for information on the tax withheld from an (allocated) pension payment amount.
For further information, please refer to the Product Disclosure Statement (PDS)^ for FirstChoice Pension, FirstChoice Wholesale Pension or Personal Pension Plan. The PDSs are available on our website at colonialfirststate.com.au or by calling us on 13 13 36. You should read the PDS carefully to assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision.
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Bankruptcy claw-back payment
If you are declared bankrupt, some of your super contributions may be withdrawn from your account balance to be paid to your creditors. We call this a bankruptcy claw-back payment. We will notify you if we receive an order from a trustee in bankruptcy to claw back your super contributions.
No benefits tax is withheld on a bankruptcy claw-back payment.
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Benefits tax
If you are age 60 or over, no tax is payable on the super benefits paid to you (except for a departing Australia superannuation payment (DASP) paid to an ex-temporary resident), whether paid as a lump sum or pension.
No benefits tax is payable on the tax-free component of your super benefit. Otherwise, benefits tax may be withheld from the taxable component of your super benefit and depends on:
If you claim a super benefit and your account balance is released to you before you are entitled to receive a super benefit, the total amount paid to you is taxable at your marginal tax rate as normal income. You may be liable to pay this tax when you lodge your next personal tax return. You may also be liable for additional Australian Taxation Office (ATO) penalties.
Otherwise, the benefits tax rates that currently apply to your super benefit are set out in the table below.
* Includes Medicare levy of 1.5%.
* Includes Medicare levy of 1.5%.
* Includes Medicare levy of 1.5%.
* Includes Medicare levy of 1.5%.
| Salary continuance income stream |
Rate |
Description |
| Whole payment – no tax-free component or taxable component |
Your marginal tax rate |
If you are temporarily totally incapacitated and assessed by the insurer and trustee to be eligible for a salary continuance income stream, a monthly payment is paid to you to replace your salary and wages. It is treated as normal assessable income and taxed at your marginal tax rate.
Tax is withheld from the monthly salary continuance income stream paid to you and remitted to the ATO. You will be given a Payment Summary at the end of the financial year to include in your tax return. |
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Binding death nomination
If you have not yet commenced a pension, the binding death nomination form allows you to nominate which of your dependants or your legal personal representative you would like to receive your death benefit. Conditions apply to making a valid nomination. These conditions are described on the binding death nomination form available in the most current FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Employer Super or Rollover & Superannuation Fund PDS on our website at colonialfirststate.com.au or by calling us on 13 13 36.
Also see spouse and child for information about recent changes to these definitions affecting the definition of dependants.
If you do not make a nomination, or your nomination is invalid, has lapsed or been revoked, your death benefit will generally be paid to your legal personal representative.
If you have or are about to commence a pension, see reversionary beneficiary and pension death nomination form.
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Centrelink asset test
The Centrelink assets test is used, in addition to the Centrelink income test, by Centrelink to calculate the amount of Government age pension that you are entitled to receive.
Additional information is available on the Centrelink website at www.centrelink.gov.au.
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Centrelink income test
The Centrelink income test is used, in addition to the Centrelink assets test, by Centrelink to calculate the amount of Government age pension that you may be entitled to receive.
Note that the Government has made changes to the Centrelink income test that applied from 20 September 2009. You should speak to your financial adviser for further information.
Additional information is available on the Centrelink website at www.centrelink.gov.au.
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CGT cap
This contribution cap is only relevant to you if you make a CGT contribution.
All CGT contributions you make in your lifetime cumulatively count towards this cap.
CGT contributions in excess of this cap count towards your non-concessional cap.
CGT contributions below this cap do not count towards any contribution cap.
The CGT cap is indexed annually to the average weekly ordinary time earnings (AWOTE) index in $5,000 increments:
| Financial year |
CGT cap |
| 2007/2008 |
$1 million |
| 2008/2009 |
$1.045 million |
| 2009/2010 |
$1.1 million |
To have a contribution arising from the sale of eligible small business assets count towards your CGT cap rather than your non-concessional cap, you must give your fund a CGT cap election form with the contribution. You can download this from www.ato.gov.au.
To use all or part of the proceeds of the sale to contribute to super as a CGT contribution, you must provide a CGT cap election form (available from www.ato.gov.au) within 30 days of making a CGT contribution. Otherwise the amount in excess of the non-concessional cap will be refunded to you. You should speak to your financial adviser for further information.
Also see super contributions for more information about CGT contributions.
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CGT contribution
If you own an eligible small business, you may be eligible for a capital gains tax exemption on the sale of your business or its assets. You may be able to use all or part of the proceeds of the sale to contribute to super as a CGT contribution. You must provide a CGT cap election form (available from www.ato.gov.au) within 30 days of making a CGT contribution, otherwise the amount in excess of the non-concessional cap will be refunded to you and the remainder counted towards your non-concessional cap. You should speak to your financial adviser for further information.
CGT contributions:
- are not subject to contributions tax, or TFN tax
- count towards the non-concessional cap to the extent they are greater than your lifetime CGT cap. Amounts below the CGT cap do not count towards any contributions cap
- form part of the tax-free component of your super benefit.
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Child
A ‘child’ includes any person who is your natural, step, adopted, ex-nuptial or current spouse’s child, including a child who was born through artificial conception procedures or under surrogacy arrangements with your current or then spouse.
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Child contributions
See non-concessional contributions for more information about child contributions.
Also see super contributions.
See child above for information about recent changes to this definition.
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Choice of fund
Since 1 July 2005 you may be able to choose the super fund to which your employer makes your 9% SG contributions. Currently some employees do not have choice, eg some Government employees in public sector schemes or employees covered by some types of industrial awards.
You should ask your employer if you are eligible to choose your own fund and if so, request a ‘standard choice form’ to nominate your chosen fund.
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Compassionate grounds benefit
APRA – the prudential regulator of the Australian financial services industry – has discretion to allow payment of your account balance if you meet its definition of needing assistance on ‘compassionate grounds’. This may include if you are required to make a payment on a loan to prevent foreclosure of a mortgage, to cover expenses in relation to the death of one of your dependants, funeral or burial costs, or to pay for medical expenses for you or one of your dependants. To receive this kind of super benefit you must apply to APRA. Additional information is available on its website at www.apra.gov.au under the ‘Early Release of Superannuation Benefits’ section.
See benefits tax for information on the tax withheld from a compassionate grounds benefit.
Also see spouse and child for information about recent changes affecting the definition of dependants.
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Concessional cap
Contributions in excess of your concessional cap will be taxed at an additional rate of 31.5% on the excess contributions, on top of contributions tax.
If you are assessed for excess concessional contributions tax, the Australian Taxation Office (ATO) will send you a tax bill that you must pay within 21 days. The ATO will also send you a release authority so you may withdraw the amount of the tax from your account balance within 90 days.
The concessional cap is indexed annually to the average weekly ordinary time earnings (AWOTE) index in $5,000 increments. If you are age 50 or over in the financial year, transitional provisions apply to increase your cap. This transitional cap is not indexed and will only remain in place until 30 June 2012.
The contribution caps are detailed in the following table:
| Financial year |
2007/2008 |
2008/2009 |
2009/2010 |
| Under age 50 in the financial year |
$50,000
per annum |
$50,000
per annum |
$25,000
per annum
(Indexed annually to AWOTE
in $5,000 increments) |
Age 50 and over in the financial year
(transitional cap) |
$100,000
per annum |
$100,000
per annum |
$50,000 per annum until 30 June 2012(From 1 July 2012, the indexed cap for under age 50s will apply to everyone.) |
From time to time, the Government may change the contribution caps. You should refer back to this ‘Super terms explained’ page, or call us for a copy, for the most up-to-date information on the contribution caps that apply.
Generally, only your concessional contributions count towards your concessional cap.
However, if you make an employer directed termination payment (DTP), the taxable component in excess of the DTP cap will also count towards your concessional cap. Your contributions in excess of the concessional cap also count towards your non-concessional cap.
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Concessional contributions
Concessional contributions are generally the following super contributions made by your employer or personal deductible contributions:
- Employer contributions - a contribution your employer makes to your account balance. This includes your 9% SG contributions. Your employer may also be required to contribute for you under an industrial award or agreement. These contributions are also referred to as ‘compulsory contributions’ or ‘mandated employer contributions’. Employers may also make ‘additional’ or ‘voluntary’ contributions if that forms part of your employment contract.
- Salary sacrifice contributions - a contribution you have agreed with your employer through an effective salary sacrifice agreement to be paid directly to your super account balance instead of paid to you as salary or wages.
- Personal deductible contributions - a contribution you pay to your account balance that you can claim a tax deduction for because less than 10% of your assessable income and reportable fringe benefits and reportable employer super contributions are attributable to employment. If you are under the age of 18 you must actually have derived some income from an employment arrangement or from carrying on a business to claim a tax deduction. The contribution must be paid before 28 days after the end of the month in which you turned age 75. You must also send and have received confirmation from Colonial First State that you intend to claim a tax deduction for the contribution.
- Family and friends contributions - paid to your fund by a person other than you, your spouse or your employer. Colonial First State does not accept these contributions.
The Government has made changes to the definition of ‘income’ for the purpose of means-testing certain Commonwealth payments and entitlements. Under the expanded definition, income which is salary sacrificed to superannuation will be included in the income assessment. If you have a salary sacrifice arrangement in place, from 1 July 2009 this may affect:
You should speak to your financial adviser for further information.
These concessional contributions:
Also see super contributions.
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Contributions caps
See concessional cap and non-concessional cap.
If you make a CGT contribution or employer directed termination payment (DTP), also see CGT cap and the DTP cap.
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Contributions surcharge
Between 20 August 1996 and 30 June 2005, if your taxable income and reportable fringe benefits exceeded a prescribed limit, the Australian Taxation Office (ATO) may assess you for contributions surcharge of up to 15% of the taxable contributions made during this period. This will generally be deducted from your account balance.
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Contributions tax
This tax is deducted from your account balance at a rate of 15% of:
Other taxes that may apply to your
super contributions include
TFN tax and
excess contributions tax.
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Death benefit
This is a super benefit equal to your account balance paid to your dependants or legal personal representative in the event of your death.
See spouse and child for information about recent changes to these definitions affecting the definition of dependants.
Also, if you are invested in FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Employer Super or Rollover & Superannuation Fund and have death insurance cover, the death benefit will include the insured amount when the insurer has approved the claim.
If you have not yet commenced a pension, you may nominate who you wish to receive your death benefit using a binding death nomination.
When you commence your pension, you may nominate a reversionary beneficiary to receive your pension when you die. Alternatively, you may complete a pension death nomination form at any time nominating which of your dependants or legal personal representative you would like to receive your remaining account balance when you die.
If your death benefit is paid as a lump sum to your dependants (other than a child over age 18), no tax is payable on the payment. Otherwise, see benefits tax for information on the tax withheld from a death benefit.
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Death insurance cover
Death insurance cover leaves your beneficiaries with money to help cater for their financial wellbeing in the event of your death. The insurance premiums are deducted from your account balance.
You should refer to the Product Disclosure Statement (PDS)^ for the terms and conditions of your death insurance cover.
You can find the amount of your death insurance cover and the premiums on your half-yearly statements, via FirstNet or by calling us on 13 13 36.
See also death benefit.
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Default fund
This is the super fund nominated by your employer to receive your 9% SG contributions if you do not choose your own fund. However, if you are covered by a federal award, the default fund you must use may be specified in that award. If you do not want your contributions to go to the default fund you may be eligible to nominate a different fund. You should ask your employer if you are eligible to choose your own fund and if so request a ‘standard choice form’ to nominate your chosen fund. See choice of fund.
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Departing Australia superannuation payment (DASP)
If you held a temporary resident visa and have now left Australia, you can withdraw your super as a lump sum (subject to withholding tax) when you permanently leave Australia. New Zealand citizens, Australian citizens and permanent residents are not eligible for a DASP. The amount released from super under a DASP must be your total account balance (net of tax). For guidance on how to request a DASP, go to the Australian Taxation Office’s (ATO’s) information page, ‘Superannuation - information for temporary residents departing Australia’ at www.ato.gov.au.
You are entitled to a DASP equal to your account balance (less tax), if:
- you are not an Australian or New Zealand citizen, permanent resident in Australia or do not hold a 405 or 410 retirement visa
- you leave Australia
- your temporary visa has ceased to have effect, and
- you provide us written evidence of these facts as follows:
If your account balance is under $5,000, please forward the following:
- Certified copy of your passport details page showing your name, signature and photo*.
- Certified copy of your expired/cancelled Australian temporary resident visa*.
- Certified copy of your passport page showing your Australian embarkation and disembarkation stamp*.
- Completed DASP withdrawal form available on our website.
If your account balance is $5,000 or more, please forward the following:
- A Certification of Immigration Status from:
Department of Immigration and Citizenship
GPO Box 1496
Hobart TAS 7001
Phone: +61 3 6220 4028
Email: Super.hobart@immi.gov.au
Website: http://www.immi.gov.au/allforms/pdf/1194.pdf
- Completed DASP withdrawal form available on our website.
- Certified copy of your passport details page showing your name, signature and photo*.
* Documents can be certified by an Australian Consulate Official, or an Australian Justice of the Peace, Solicitor or Notary Public.
See benefits tax for information on the tax withheld from a DASP.
If you are a temporary resident, you may only otherwise be paid the following super benefits, either as a lump sum or a pension:
We may be required to pay your account balance to the Australian Taxation Office (ATO) after the later of six months after your temporary visa expires and you leave the country. If:
- you do not first request a DASP, or
- you commence a pension when you are not in fact entitled to,
generally, no interest accrues on your account balance from the time it is paid to the ATO. You may claim your benefit by contacting the ATO and downloading a DASP application from its website at www.ato.gov.au, or by calling on 13 10 20 or emailing it at DASPmail@ato.gov.au.
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Dependants
Under law, your death benefit may only be paid to your dependants or your legal personal representative.
Your dependants are:
- your current spouse - this includes the person at your death to whom you are married or with whom you are in a de facto relationship (whether of the same sex or a different sex) or in a relationship that is registered under a law of a State or Territory
- your child - this includes any person who at your death is your natural, step, adopted, ex-nuptial or current spouse’s child, including a child who was born through artificial conception procedures or under surrogacy arrangements with your current or then spouse
- any person financially dependent on you - this includes any person who at your death is wholly or partially financially dependent on you. Generally, this is the case if the person receives financial assistance or maintenance from you on a regular basis that the person relies or is dependent on to maintain their standard of living at the time of your death
- any person with whom you have an interdependency relationship - this includes any person who at your death:
- you have a close personal relationship with
- you have lived with
- you have provided financial support for or vice versa, and
- you have provided domestic support and personal care for or vice versa.
The relationship is not required to meet the last three conditions, if the reason these requirements cannot be met is because you or the other person is suffering from a disability. In establishing whether such a relationship exists, all of the circumstances of the relationship are taken into account, including (where relevant):
- the duration of the relationship
- whether or not a sexual relationship exists
- the ownership, use and acquisition of property
- the degree of mutual commitment to a shared life
- the care and support of children
- the reputation and public aspects of the relationship (such as whether the relationship is publicly acknowledged)
- the degree of emotional support
- the extent to which the relationship is one of mere convenience, and
- any evidence suggesting that the parties intended the relationship to be permanent.
For tax purposes, the same people are your dependants except that a child is deemed only to be your dependant if they are under age 18. This means that if you nominate your child age 18 or over to receive your death benefit, benefits tax may be withheld from the payment. See benefits tax for more information on the tax withheld from death benefits.
A pension may only be paid after you die to an eligible pension dependant. Otherwise your death benefit will be paid as a lump sum.
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DTP cap
This contribution cap is only relevant to you if you contribute an employer directed termination payment (DTP).
The DTP cap is $1 million (not indexed) minus any amounts counted towards this cap since 1 July 2007. The taxable component of an employer directed termination payment (DTP) in excess of this cap counts towards your concessional cap. The taxable component below this amount and the tax-free component do not count towards any contributions caps.
See
super contributions and
employer directed termination payments (DTP) for more information.
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Eligible pension dependant
Your death benefit can only be paid as a pension to an eligible pension dependant. This means any dependant, but only your child if at the time of the payment they are under 18, under 25 and financially dependent on you, or have a certain type of disability.*
If your child’s circumstances change and they don't meet the above requirements, we are required to pay your death benefit to them as a lump sum.
Also see spouse and child for information about recent changes to these definitions affecting the definition of dependant.
If you have not commenced a pension, see binding death nomination. Otherwise, see pension death nomination form and reversionary beneficiary.
* For more information on eligible pension dependants please call your financial adviser. Alternatively, you can call us on 13 13 36, 8am to 7pm, Monday to Friday (Sydney time).
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Employer contributions
See concessional contributions for more information about employer contributions.
Also see super contributions.
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Employer directed termination payment (DTP)
If, as a result of the termination of your employment, you were entitled under an employment arrangement in place before 10 May 2006 to be paid a termination payment, you may elect within 30 days of receiving a pre-payment statement from your employer to pay that amount into your account balance. You may only do this prior to 30 June 2012. An employer directed termination payment (DTP) is also referred to as ‘a golden handshake’ and prior to 1 July 2007 was referred to as an ‘employer eligible termination payment (ETP)’. A DTP is a contribution for superannuation purposes, so the work test must be satisfied for those people aged 65 or over who wish to direct their payments to a super fund. You should speak to your financial adviser for further information.
The taxable component of a DTP:
The tax-free component of a DTP:
Also see super contributions.
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Excess concessional contributions tax
See concessional cap.
Other taxes that may apply to your super contributions include contributions tax, TFN tax, and contributions surcharge.
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Excess contributions tax
See excess concessional contributions tax and excess non-concessional contributions tax.
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Excess non-concessional contributions tax
See non-concessional cap.
Other taxes that may apply to your
super contributions include
contributions tax,
TFN tax, and
contributions surcharge.
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Family law payment split
Under the Family Law Act your account balance (super or pension) can be divided between you and your ex-spouse (which includes same-sex and opposite-sex de facto partners) as part of a property settlement on the breakdown of your relationship. The amount of your account balance transferred to your ex-spouse is known as a family law payment split.
No benefits tax is withheld on a family law payment split.
See spouse for information about recent changes to this definition to include same-sex couples.
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Financial hardship benefit
To qualify for a financial hardship benefit:
- if you are under age 55, you must generally be receiving some type of Government income support benefit continuously for at least 26 weeks and be unable to meet your family living expenses, and
- if you are age 55 or over, you must generally be receiving some type of Government income support benefit for at least 39 weeks (cumulative) since you reached age 55 and not be gainfully employed on a full-time or part-time basis on the date you apply for a financial hardship benefit.
If you are under age 55, the amount released from super in each 12-month period must be a single lump sum not less than $1,000 and not more than $10,000. If you are age 55 or over there are no cashing restrictions.
See benefits tax for information on the tax withheld from a financial hardship benefit.
Please contact us on 13 13 36 or complete this form if you wish to apply for a financial hardship benefit.
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Fund cap limit
A one-off contribution in excess of your non-concessional cap will generally be refunded to you less taxes, fees, costs and insurance premiums and reduced or increased for market movements.
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Government age pension
A social security benefit paid by the Federal Government to people who have reached the qualification age*, being age 65 for men and between age 64 and 65 for women depending on when you were born. The amount of the pension paid to you (if any) is determined by the Centrelink income test and the Centrelink asset test.
*The Government has announced that the qualification age will gradually increase to age 67 for both men and women, commencing from 1 July 2017.
Additional information is available on the Centrelink website.
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Government co-contribution
Generally, to qualify for a Government co-contribution, you must:
- make a personal contribution to your account balance
- earn 10% or more of your income as an employee or from self-employment, and
- earn between the following lower and higher income thresholds
The co-contribution reduces for every dollar you earn over the lower income threshold, cutting out the Government co-contribution at the higher income threshold.
The Government has temporarily reduced the maximum amount of the Government co-contribution as follows:
| Financial year |
Lower income threshold |
Higher income threshold |
Maximum co-contribution |
| 2007/2008 |
$28,980 |
$58,980 |
$1,500 |
| 2008/2009 |
$30,342 |
$60,342 |
$1,500 |
| 2009/2010 |
$31,920 |
$61,920 |
$1,000 |
* The Government has announced that the temporarily reduced annual maximum co-contribution limit of $1,000 will be in place until 30 June 2012. It will then increase to $1,250 per year for a further two years until it reverts back to an annual maximum co-contribution limit of $1,500 on 1 July 2014.
Government co-contributions:
- are not subject to contributions tax, or TFN tax
- do not count towards a contributions cap
- form part of the tax-free component of your super benefit.
In addition, the Government has made changes from 1 July 2009 that mean that salary sacrifice contributions will be counted as income when assessing whether an individual qualifies for a Government co-contribution. This means that making salary sacrifice contributions will no longer reduce assessable income to qualify for a higher co-contribution. You should speak to your financial adviser for further information.
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Legal personal representative
By law, your death benefit can generally only be paid to your legal personal representative or directly to your dependants. Your legal personal representative is the executor, administrator or trustee of your estate appointed when you die.
If you have not yet commenced a pension, see binding death nominations. Otherwise see pension death nomination form and reversionary beneficiary.
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Low rate cap amount
The low rate cap is the limit set on the amount of the taxable component* of a super lump sum benefit that you can receive at a lower (or nil) rate of tax. It applies if you have reached your preservation age (currently age 55) to age 59.
| Financial year |
Low rate cap amount** |
| 2007/2008 |
$140,000 |
| 2008/2009 |
$145,000 |
| 2009/2010 |
$150,000 |
*The taxable component of any super benefit previously paid to you will also count towards the low rate cap amount.
**The ‘low rate cap amount’ is indexed annually to the average weekly ordinary time earnings (AWOTE) index in $5,000 increments.
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Lump sum
A super benefit paid to you as a single cash payment rather than used to commence a pension.
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Non-concessional contributions
Non-concessional contributions are generally contributions made from your after-tax income by you, your spouse or on behalf of your child:
These non-concessional contributions:
A one-off contribution in excess of your non-concessional cap will generally be refunded to you within 30 days less taxes, fees, costs and insurance premiums and reduced or increased for market movements.
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Non-concessional cap
Contributions in excess of your non-concessional cap will be taxed at a rate of 46.5% on the excess contributions.
If you are assessed for excess non-concessional contributions tax, the Australian Taxation Office (ATO) will send you a tax bill that you must pay within 21 days. The ATO will also send you a release authority that you must send to your super fund within 21 days to withdraw the amount of the tax from your account balance.
From 1 July 2009, your non-concessional cap is equal to six times the concessional cap. If you are under age 65 in the financial year, you may use the ‘bring forward rule’ to contribute a total of three times the cap over a three-year period. The concessional cap is indexed annually to the average weekly ordinary time earnings (AWOTE) index in $5,000 increments and the non-concessional cap will increase accordingly.
Your non-concessional cap for the relevant financial year is set out below:
| Financial year |
2007/2008 |
2008/2009 |
2009/2010 |
Under age 65
(at the time of the contribution or beginning of three year period) |
$150,000 per annum, or
$450,000 over a three year period |
$150,000 per annum, or
$450,000 over a three year period |
$150,000 per annum, or
$450,000 over a three year period
|
| Age 65 and over |
$150,000 per annum |
$150,000 per annum |
$150,000 per annum
|
From time to time, the Government may change the contribution caps. You should refer back to this ‘Super terms explained’ page, or call us for a copy, for the most up-to-date information on the contribution caps that apply.
Generally, only your non-concessional contributions count towards your non-concessional cap. However, if you make a CGT contribution or an employer directed termination payment (DTP) you will also need to consider the CGT cap and the DTP cap and whether these contributions count towards the non-concessional cap or the concessional cap.
If you make a single contribution in excess of the non-concessional cap, the excess will be refunded to you within 30 days less taxes, fees, costs and insurance premiums and reduced or increased for market movements.
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Pension
A super benefit paid to you as a regular income stream rather than a lump sum. FirstChoice Pension or FirstChoice Wholesale Pension offers an allocated pension or a pre-retirement pension.
You do not pay any tax on the investment earnings or capital gains in your account balance used to pay a pension. If you are age 60 or over, no tax is payable on your pension payments. Otherwise, see benefits tax for information on the tax withheld from your pension payment amount.
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Pension death nomination form
If you have commenced a pension, the pension death nomination form allows you at any time to nominate which of your dependants or your legal personal representative you wish to receive your remaining account balance as a death benefit. Conditions apply to making a valid nomination. These conditions are described on the pension death nomination form available in the most current FirstChoice Pension, FirstChoice Wholesale Pension or Personal Pension Plan PDS on our website at colonialfirststate.com.au or by calling us on 13 13 36.
Also see spouse and child for information about recent changes to these definitions affecting the definition of dependants.
Alternatively, see reversionary beneficiary, who you may appoint when you commence your pension to receive your pension when you die.
A pension may only be continued to be paid after you die to an eligible pension dependant. Otherwise, your remaining account balance will be paid as a death benefit in the form of a lump sum.
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Pension payment amount
The annual payment you receive from your pension. See allocated pension and pre-retirement pension.
If you are age 60 or over, no tax is payable on your pension payments. Otherwise, see benefits tax for information on the tax withheld from your pension payment amount.
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Pension tax offset
A tax offset (or rebate) equal to15% of the taxable component of your pension payment amount may apply to reduce the benefits tax withheld from the payment. Those who have reached their preservation age (currently age 55) are automatically entitled to this offset. Those under their preservation age are entitled to this offset if they have commenced a pension from a total and permanent disability (TPD) benefit or a death benefit.
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Personal contributions
See non-concessional contributions or personal deductible contributions for more information about personal contributions.
Also see super contributions.
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Personal deductible contributions
See concessional contributions for more information about personal deductible contributions.
Also see super contributions.
The Government has made changes to the definition of ‘income’ for the purpose of means-testing certain Commonwealth payments and entitlements. Under the expanded definition, income which is salary sacrificed to superannuation will be included in the income assessment. If you have a salary sacrifice arrangement in place, from 1 July 2009 this may affect your eligibility to make personal deductible contributions.
You should speak to your financial adviser for further information.
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Personal injury payment
If you are awarded a structured settlement payment, an order for a personal injury payment, or a lump sum workers’ compensation payment by a court order or under a written agreement (including approved by the court or a consent order) you may pay that amount into your account balance within 90 days if two doctors have certified that because of your personal injury, it is unlikely that you can ever be gainfully employed in a capacity for which you are reasonably qualified because of education, experience or training. You must provide a contribution for personal injury form (available from www.ato.gov.au) within 90 days of making the personal injury payment; otherwise the amount in excess of the non-concessional cap will be refunded to you. You should speak to your financial adviser for further information.
A personal injury payment:
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Premium
The amount you pay for your death insurance cover, total and permanent disability (TPD) insurance cover and salary continuance insurance cover available under FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Employer Super or Rollover & Superannuation Fund. If you arrange insurance through your superannuation, the premium is paid from your account balance rather than from your after-tax income.
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Pre-retirement pension
A pre-retirement pension is also known as a ‘transition to retirement pension’. It is designed to supplement your income in the later years of your working life, before you retire.
Like an allocated pension, you must take a minimum pension payment amount each year. However, in addition, you are restricted to taking a maximum pension payment amount each year of 10% of your account balance as at 1 July (or the commencement of your pension). You cannot take an additional lump sum other than if you are eligible for an unrestricted non-preserved cash benefit from your account balance.
Your pre-retirement pension will convert to the rules of an allocated pension (with no maximum pension payment amount or restrictions on taking a lump sum) on the earlier of the date that you:
Example
Emma invests $100,000 into a pre-retirement FirstChoice Pension on 1 July 2010. She is aged 57, so her minimum pension payment amount is 2% and her maximum pension payment amount is 10% of her account balance. As a result, her minimum and maximum pension payment amounts are:
- minimum pension payment amount = $100,000 x 2% = $2,000
- maximum pension payment amount = $100,000 x 10% = $10,000.
Therefore, Emma can choose a pension payment amount of between $2,000 and $10,000 for the 2010/2011 financial year. Note that tax may apply on the pension payments as Emma is under age 60.
Please refer to allocated pension for details about the minimum pension payment amount rules, including recent changes to the 2010/2011 financial year.
When you commence your pre-retirement pension, you may nominate a reversionary beneficiary to receive your pension when you die. Alternatively, you may complete a pension death nomination form at any time, nominating which of your dependants or legal personal representative you would like to receive your remaining account balance on your death.
If you are age 60 or over, no tax is payable on your pre-retirement pension. Otherwise, see benefits tax for information on the tax withheld from a pre-retirement pension.
For further information, please refer to the Product Disclosure Statement (PDS)^ for FirstChoice Pension or FirstChoice Wholesale Pension. The PDSs are available on our website at colonialfirststate.com.au or by calling us on 13 13 36. You should read the PDS carefully to assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision.
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Preservation age
Once you have reached your preservation age, you may be eligible to commence a pre-retirement pension, receive the pension tax offset or take a retirement benefit. Your preservation age depends on your date of birth. Currently, if you were born before 1 July 1960 your preservation age is 55. This increases on a yearly basis until 1 July 1964, when all those who were born on or after this date have a preservation age of 60.
Your date of birth |
Preservation age |
| Before 1 July 1960 |
55 |
| 1 July 1960 to 30 June 1961 |
56 |
| 1 July 1961 to 30 June 1962 |
57 |
| 1 July 1962 to 30 June 1963 |
58 |
| 1 July 1963 to 30 June 1964 |
59 |
| On or after 1 July 1964 |
60 |
From time to time, the Government may change the preservation age. You should refer back to this ‘Super terms explained’ page, or call us for a copy, for the most up-to-date information on your preservation age.
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Preserved
Since 1 July 1999, all contributions to, and investment earnings on your account balance are preserved. The amount of your account balance that is preserved cannot be withdrawn as either a lump sum or a pension until you meet the eligibility criteria for a retirement benefit, a total and permanent disability (TPD) benefit, a terminal illness benefit or a death benefit. You may also access your preserved amount when you are eligible for a pre-retirement pension.
In exceptional circumstances, you may also be paid some or all of your preserved amount if you are entitled to a financial hardship benefit, a compassionate grounds benefit or a departing Australia superannuation payment (DASP).
You can find the value of the preserved amount of your account balance on your half-yearly statement, via FirstNet, or by calling us.
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Product Disclosure Statement (PDS)^
An offer document that sets out information on a financial product, including the features of the product, costs that apply, the benefits and risks, and other information that enables investors to make informed investment decisions. You can view our PDSs^ for FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Employer Super, FirstChoice Pension and FirstChoice Wholesale Pension here.
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Release authority
If you are assessed for excess contributions tax, you must pay it to the Australian Taxation Office (ATO) within 21 days. The ATO will also send you a release authority that authorises you to take the amount of the tax out of your account balance.
A release authority:
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Reportable employer super contributions
The Government has made changes to the definition of ‘income’ for the purpose of means-testing certain Commonwealth payments and entitlements. Under the expanded definition, income which is salary sacrificed to superannuation will be included in the income assessment. If you have a salary sacrifice arrangement in place, from 1 July 2009 this may affect:
You should speak to your financial adviser for further information.
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Restricted non-preserved
This is the portion of your account balance generally made up of after-tax contributions made to your super fund prior to 1 July 1999 (then known as undeducted contributions). This money can be paid to you as an unrestricted non-preserved cash benefit when you cease employment with the employer who made employer contributions to your account balance.
You can find the value of the restricted non-preserved amount of your account balance on your half-yearly statement, via FirstNet, or by calling us.
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Retired
For the purposes of paying a retirement benefit, you are retired when you:
- reach your preservation age and have ceased employment and do not intend to ever again work more than 10 hours per week, or
- you have ceased employment on or after age 60 (regardless of future work intentions), or
- you turn 65 (regardless of current employment status and future work intentions).
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Retirement benefit
A super benefit paid to you when you have retired, meaning you have reached your preservation age and have ceased employment and do not intend to ever again work more than 10 hours per week; or you have ceased employment on or after age 60 (regardless of future work intentions); or you turn 65 (regardless of current employment status and future work intentions).
A retirement benefit can be paid to you as a pension, a lump sum, or a combination of both.
If you are age 60 or over, no tax is payable on your retirement benefit. Otherwise, see benefits tax for information on the tax withheld from a retirement benefit.
From 1 April 2009, you are not eligible for this type of benefit if you are or have been a temporary resident and have not subsequently become either a citizen of Australia or New Zealand or a permanent resident of Australia. See departing Australia superannuation payment (DASP) for more information.
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Reversionary beneficiary
When you commence a pension, you can nominate a dependant to be your reversionary beneficiary. This means in the event of your death, that person will receive your pension.
If the person you nominate is a child but not an eligible pension dependant at the time of your death, then we must pay your remaining account balance to that child as a lump sum.
If your nominated reversionary beneficiary pre-deceases you, and you have not changed your nomination, we must pay your remaining account balance to your legal personal representative.
Alternatively, the pension death nomination form allows you at any time to nominate which of your dependants or your legal personal representative you wish to receive your remaining account balance as a death benefit.
Also see spouse and child for information about recent changes to these definitions affecting the definition of dependant.
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Rollover
Transferring your account balance (in whole or part) from one superannuation fund or product to another. You can rollover your super irrespective of your age or work status. A rollover does not count towards any contributions cap. Generally, no tax is withheld from your rollover.
Also see untaxed rollover.
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Salary continuance income stream
See salary continuance insurance cover.
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Salary continuance insurance cover
Also known as ‘income protection insurance’. If you are invested in FirstChoice Personal Super, FirstChoice Wholesale Personal Super or FirstChoice Employer Super and have salary continuance insurance cover, a monthly benefit is paid to you if you have ceased to be gainfully employed because you are temporarily disabled due to illness or injury. The payment of a salary continuance income stream does not affect your account balance and can only be paid to you if the insurer approves your claim. The insurance premiums are deducted from your account balance. A waiting period applies and payments may continue for two years or until age 65 depending on the terms and conditions of your cover.
You can find the amount of your salary continuance insurance cover and the premiums on your half-yearly statements, via FirstNet or by calling us on 13 13 36.
Refer to the Product Disclosure Statement (PDS)^ for the terms and conditions of your salary continuance insurance cover.
See benefits tax for information on the tax withheld from a salary continuance income stream.
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Salary sacrifice contributions
See concessional contributions for more information about salary sacrifice contributions.
Also see super contributions.
The Government has made changes to the definition of ‘income’ for the purpose of means-testing certain Commonwealth payments and entitlements. Under the expanded definition, income which is salary sacrificed to superannuation will be included in the income assessment. If you have a salary sacrifice arrangement in place, from 1 July 2009 this may affect:
You should speak to your financial adviser for further information.
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Social security benefit
Centrelink and the Department of Veterans' Affairs both use the Centrelink assets test and Centrelink income test to assess the amount you are eligible to receive as a social security benefit, including the Government age pension and service pension.
The Government has made changes to the definition of ‘income’ for the purpose of means-testing certain Commonwealth payments and entitlements. Under the expanded definition, income which is salary sacrificed to superannuation will be included in the income assessment. If you have a salary sacrifice arrangement in place, from 1 July 2009 this may affect the amount of social security benefit you are eligible to receive.
You should speak to your financial adviser for further information.
Additional information is available on the Centrelink website at www.centrelink.gov.au.
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Spouse
In December 2008, the Government amended the definition of ‘spouse’ to include a person to whom you are married or with whom you are in a de facto relationship (whether of the same sex or a different sex) or in a relationship that is registered under a law of a State or Territory.
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Spouse contributions
See non-concessional contributions for more information about spouse contributions.
Also see super contributions.
See spouse for information about recent changes to this definition to include same-sex couples.
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Spouse contribution offset
A tax offset of up to $540 may be claimed if you make a spouse contribution to your spouse's super fund. To receive this offset your spouse's assessable income plus reportable fringe benefits must be less than $13,800, with the full $540 offset payable if you contribute $3,000 for a spouse who earns less than $10,800.
See spouse for information about recent changes to this definition to include same-sex couples.
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Spouse contribution split
You may split 85% of your concessional contributions in a financial year, up to a maximum of the concessional cap, with your spouse. You must complete the form available on our website at colonialfirststate.com.au or call us on 13 13 36.
See spouse for information about recent changes to this definition to include same-sex couples.
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Super benefits
A payment to you from your account balance as a lump sum or pension, including a:
You should refer to the eligibility criteria for each type of super benefit to determine when you may be paid a super benefit.
If you are age 60 or over, no tax is payable on a super benefit paid to you (except a departing Australia superannuation payment (DASP)). Otherwise, see benefits tax for information on the tax that will be withheld from your super benefit.
From 1 April 2009, you are not eligible for all these types of benefit if you are or have been a temporary resident and have not subsequently become either a citizen of New Zealand or Australia or a permanent resident of Australia. See departing Australia superannuation payment (DASP) for more information.
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Super contributions
Before making a super contribution you should consider:
There are three categories of contributions: concessional contributions, non-concessional contributions and other contributions (Government co-contributions, CGT contributions, employer directed termination payments (DTP) and personal injury payments).
The table below sets out the types of contributions and the symbols or indicate if you are eligible to make this type of contribution or rollover, although some conditions may apply.
Please note: Although the above table may indicate that you are eligible to contribute to super, contributions tax, TFN tax and excess contributions tax may apply to your super contribution.
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Taxable component
If you are age 60 or over, no tax is payable on the taxable component of your super benefit (except a departing Australia superannuation payment (DASP)). Otherwise, see benefits tax for information on the tax withheld from your super benefit.
If you have not yet commenced a pension, the taxable component is equal to your super benefit less your tax-free component. Generally, this is your pre-tax concessional contributions such as employer contributions, salary sacrifice contributions, personal deductible contributions, the taxable component of rollovers and employer directed termination payments (DTP). It also includes the net investment earnings included in your account balance.
On commencement of a pension, the proportion of your taxable component and tax-free component is calculated. Every subsequent pension payment amount or additional lump sum has this proportion of taxable component and tax-free component.
You can find the amount of your taxable component via FirstNet or by calling us on 13 13 36.
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Tax file number (TFN)
A TFN is a unique identifying number issued to you by the Australian Taxation Office (ATO). It is not an offence not to tell us your TFN; however, if you do not you may have TFN tax deducted from your account balance, or have your super contributions other than employer contributions refunded to you within 30 days less taxes, fees, costs and insurance premiums and reduced or increased for market movements. If you are eligible, you may not receive your Government co-contribution.
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Tax-free component
No tax is payable on the tax-free component of your super benefit.
If you have not yet commenced a pension, your tax-free component is generally equal to your after-tax non-concessional contributions (formerly known as undeducted contributions), such as your personal contributions, spouse contributions, child contributions and Government co-contributions. Additional amounts, such as the tax-free component of a rollover or employer directed termination payment (DTP), CGT contribution or personal injury payment are also included in the tax-free component of your account balance.
On commencement of a pension, the proportion of your taxable component and tax-free component is calculated. Every subsequent pension payment amount or additional lump sum has this same proportion of taxable component and tax-free component.
You can find the amount of your tax-free component via FirstNet or by calling us on 13 13 36.
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Temporary residents
See Departing Australia superannuation payment (DASP).
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Terminal illness benefit
A terminal illness benefit can be paid to you as a lump sum (regardless of your age) equal to your account balance if you have a terminal medical condition. This means two doctors (at least one being a specialist) have certified that you suffer from an illness or injury that is likely to result in your death within 12 months. Also, if you have death insurance cover (which includes cover for terminal illness), the insured amount will be paid to you if the insurer has approved your claim.
No benefits tax is withheld from a terminal illness benefit.
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TFN exemption
It is not compulsory to quote your TFN. However, generally if you do not, you may have benefits tax withheld from your pension at the highest marginal tax rate. We will not withhold additional benefits tax from your pension if you have a TFN exemption because you are under 18 and do not earn enough to pay tax, or you receive certain Centrelink pensions, benefits or allowances or a service pension from the Department of Veterans' Affairs. Newstart, sickness allowance, special benefit or partner allowance are not eligible benefits for exemption purposes.
A TFN exemption does not exempt you from TFN tax or having your super contributions refunded to you if you have not quoted your TFN.
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TFN tax
It is not compulsory to provide us your TFN; however, if you do not, we may be required to deduct additional TFN tax of 31.5% from your concessional contributions, and the taxable component of an untaxed rollover or employer directed termination payment (DTP). This is in addition to the 15% contributions tax. However, if you were a member of your super fund as at 1 July 2007, TFN tax may only be imposed on these super contributions once they reach $1,000 in a financial year.
If TFN tax has been deducted from your account balance, you can quote your TFN to us within the following three financial years for a refund. You should consider this before taking your super benefits.
Additionally, if you do not provide us your TFN within 30 days of making a super contribution other than an employer contribution, we are required to return the super contribution to you within 30 days less taxes, fees, costs and insurance premiums, and increased or decreased for market movements.
Other taxes that may apply to your super contributions include excess contributions tax and contributions surcharge.
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Total and permanent disability (TPD) benefit
A TPD benefit can be paid to you equal to your account balance if you are permanently incapacitated, meaning that two doctors have certified that due to physical or mental ill-health, you are unlikely to ever work in any employment for which you are qualified by education, training or experience.
Also, if you are invested in FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Employer Super or Rollover & Superannuation Fund and have total and permanent disability (TPD) insurance cover, the insured amount will be paid to you if the insurer has approved your claim.
If you are age 60 or over, no tax is payable on your total and permanent disability (TPD) benefit. Otherwise, see benefits tax for information on the tax withheld and additional taxation concessions that apply to a total and permanent disability (TPD) benefit.
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Total and permanent disability (TPD) insurance cover
TPD cover pays you a lump sum if you are totally and permanently disabled through illness or injury. A waiting period applies. The insurance premiums are deducted from your account balance.
You should refer to the product disclosure statement (PDS)^ for the terms and conditions of your permanent disability insurance cover.
You can find the amount of your total and permanent disability (TPD) insurance cover and the premiums on your half-yearly statements, via FirstNet or by calling us on 13 13 36.
See also total and permanent disability (TPD) benefit.
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Transition to retirement pension
See pre-retirement pension.
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Trust deed
A document that sets out the rules for how a super fund is operated. This document is available on request by calling us on 13 13 36.
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Trustees
A trustee is a person or company responsible for the operation of the super fund and ensuring the fund is managed according to the trust deed and superannuation law.
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Unrestricted non-preserved
This is the portion of your account balance that can be paid to you at any time as a non-preserved cash benefit.
You can find the value of the unrestricted non-preserved amount in your account balance on your half-yearly statements, via FirstNet, or by calling us.
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Unrestricted non-preserved cash benefit
Your unrestricted non-preserved amount in your account balance can be cashed out at any time as a lump sum or to commence a pension. Your restricted non-preserved amount in your account balance cannot be cashed out until you cease employment with an employer who made contributions to your account balance. Only contributions made to your account balance before 1 July 1999 can give rise to restricted non-preserved amounts.
If you are age 60 or over, no tax is payable on your non-preserved cash benefit. Otherwise, see benefits tax for information on the tax withheld from a non-preserved cash benefit.
From 1 April 2009, you are not eligible for this type of benefit if you are or have been a temporary resident and have not subsequently become either a citizen of New Zealand or Australia or a permanent resident of Australia. See departing Australia superannuation payment (DASP) for more information.
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Untaxed rollover
This is a rollover from an untaxed source. The taxable component of an untaxed rollover will consist, in whole or part, of an untaxed element which is taxed by the receiving fund at 15% up to the untaxed plan cap amount*. The untaxed plan cap amount is indexed annually to the average weekly ordinary time earnings (AWOTE) index in $5,000 increments.
Untaxed elements above the untaxed plan cap amount are taxed at 46.5%. This tax is withheld by the paying fund.
An untaxed source is generally a super scheme where tax has not been paid on taxable or pre-tax contributions and earnings. These are generally only Public Sector Super Schemes.
*The table below sets out the untaxed plan cap amount for the relevant income year:
| Financial year |
Untaxed plan cap |
| 2007/2008 |
$1 million |
| 2008/2009 |
$1.045 million |
| 2009/2010 |
$1.1 million |
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Work test
If you are aged between 65 and 74 you must meet the work test to be allowed to make certain super contributions. This work test requires you to have worked at least 40 hours within 30 consecutive days in a financial year prior to you or your employer making the contribution.
Generally, a super fund cannot accept super contributions when you reach age 75. However, you or your employer may contribute if you meet the work test and the contribution is received by the fund within 28 days after the end of the month in which you turn 75.
See super contributions for more information about eligibility.
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Changes to Product Disclosure Statements^
Any material or adverse change will generally be communicated to you and included in a Supplementary PDS available with the PDS^ on our website at colonialfirststate.com.au or by calling us on 13 13 36.
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Non material changes to the PDS^
The government has announced that the current 50% reduction in the minimum pension payment amount will be extended to the 2010/2011 financial year.
The government has stated that the necessary legislative amendments will be made as soon as possible in the 2010/2011 financial year to reflect this change.
This change applies to the current product disclosure statements for the following products:
- FirstChoice Pension
- FirstChoice Wholesale Pension
- Personal Pension Plan.
This means that:
- for the 2010/2011 financial year, if you have selected the minimum annual pension payment amount, we will pay you the temporary 50% reduction in the minimum pension payment amount set out in the Table 1. You may at any time increase your pension payment amount above the minimum (subject to any maximums which apply e.g. pre-retirement pension) by telling us in writing or via telephone.
Please refer to the sections on allocated pension, and pre-retirement pension for more information.
^‘Super terms explained’ should be read in conjunction with the current Product Disclosure Statement (PDS). This document was last updated on 7 July 2010. It contains general advice and information only and is not personal advice. It does not take into account your individual objectives, financial situation or needs. It is subject to change and may include changes to the PDS that are not materially adverse to you. Therefore you should always check that you have the most up-to-date version available from our website at colonialfirststate.com.au or by calling us on 13 13 36. You should read the PDS and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision.
Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of interests in FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Pension, FirstChoice Wholesale Pension and FirstChoice Employer Super from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and interests in the Rollover & Superannuation Fund and the Personal Pension Plan from the Colonial First State Rollover & Superannuation Fund ABN 88 854 638 840.