Minimum annual payments for super income streams

The Australian Federal Government have announced some changes that may impact how you drawdown from your CSC Retirement Income (CSCri) pension account.

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Reduction to minimum drawdown for pensions

As part of the Federal Government’s response to the COVID-19 pandemic, the minimum drawdown for allocated pensions—like CSC Retirement Income (CSCri)—have been halved for the 2019/20 and 2020/21 financial years. This response has no impact on defined benefit pensions.

The table below details these changes:

Age

Standard Minimum Withdrawal

Minimum Withdrawal for 2019/20 and 2020/21 Financial Years

Under 65

4%

2%

65 to 74

5%

2.5%

75 to 79

6%

3%

80 to 84

7%

3.5%

85 to 89

9%

4.5%

90 to 94

11%

5.5%

95 or Over

14%

7%

FAQ

I’m already drawing down my pension at the minimum amount allowed. What happens if I don’t do anything?

If we don’t receive new instructions from you, we will continue to apply the Standard Minimum Withdrawal (e.g. if you are under 65, 4%) to your remaining payments for the financial year 2019/20.

For the financial year 2020/21 beginning on 1 July 2020, we will apply the new Minimum Withdrawal for everyone who is drawing down their pension at the minimum allowed amount.

I would like to reduce my payments, what options do I have?

As we are nearing the end of the 2019/20 financial year, many customers have already drawn down more than the new minimum for the current financial year. As a result, there are three ways you can reduce your pension:

  1. You can elect to reduce your payments to an amount no less than the new minimum requirement;
  2. You can elect to halve the payments you are currently receiving (see Eleanor's story below); or
  3. If you've already received more than the new minimum for the current financial year, you can suspend your payments for the remainder of the financial year, and start receiving payments again at, or above, the new minimum from 1 July 2020 (see Jason's story below).

How can I change my payments?

You can change your payment amount through Member Services Online from mid-April (once our systems have been updated). We’ll advise you when this has happened.

Alternatively, if you need to update before this time, you can complete a Change of personal details form, email us at members@cscri.com.au or call us on 1300 736 096.

I’ve already received more than the new minimum in payments. Can I reverse these payments?

We can’t reverse payments that have already been made, but you can stop payments for the remainder of this financial year. You can resume payments in the 2020/21 financial year at the new minimum rate.

A tradesman using his saw at work

Jason's story

Jason is 70 and is receiving the minimum drawdown (5% or $12,000) for the 2019/20 financial year in monthly instalments. So far, he has received $9,000 this financial year, and he’d like to take full advantage of the reduced minimum for the current and next financial year.   The new reduced minimum is 2.5% or $6,000. Because he has already received $9,000, he can elect to stop payments for the 2019/20 financial year. When payments recommence in July 2020, he will receive the new 2.5% minimum for the 2020/21 financial year.

Eleanor's story

Eleanor is 62 and had elected to receive her payments from CSCri on a quarterly basis. She has already received $15,000 and her final payment of $5,000 is due in June 2020. She wants to elect to receive the minimum pension going forward, but can’t afford to go without any payment in June.   Eleanor elects to reduce her payments by 50% on an on-going basis. She will receive $2,500 in June and then will receive the new 2% minimum for the 2020/21 financial year.

Elder woman with glasses painting

Jennifer's story

Jennifer is 78 and receives an annual payment from CSCri in November each year. As Jennifer has already received her payment from CSCri this financial year, she is unable to reduce her payments for this current financial year. However, her payments will automatically reduce for the 2020/21 financial year to the new reduced minimum of 3%.

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