An Allocated Pension is one of the retirement products offered by RBF. It is a flexible retirement pension that has favourable tax treatment.

With an Allocated Pension you invest a lump sum and then choose a pension amount that suits your individual retirement needs. This amount must meet the minimum limit set by Commonwealth legislation. You can also choose how often you will receive your pension payments throughout the year.

To start an Allocated Pension, you must be retired and have superannuation funds that are not preserved.

If you reach your preservation age but do not wish to retire, you can commence a TTR Allocated Pension as part of Transition to Retirement (TTR). Some restrictions apply to a TTR Allocated Pension.

You can decide the Member Investment Choice option in which you would like your lump sum invested. The crediting rate and fees and charges will depend on that Member Investment Choice option. There are no entry or exit fees for the RBF Allocated Pension. You can withdraw all or part of the money in your Allocated Pension Account at any time.

You can find out more about how an Allocated Pension works by using our calculator.

What are the advantages of an RBF Allocated Pension?

How much can I be paid as an Allocated Pension?

When will RBF pay my Allocated Pension?

How long will my Allocated Pension last?

If I take an Allocated Pension can I be paid a Centrelink benefit?

What tax will I pay on my Allocated Pension payments?

Can my spouse take an RBF Allocated Pension?

How do I start an Allocated Pension?

What are the advantages of an RBF Allocated Pension?

With an Allocated Pension you can*:

• Have flexibility and control over your money.
• Access RBF's strong long-term investment returns.
• Pay no entry fees, exit fees or commissions.
• Pay low administration fees.
• Structure your investments so that you may still be paid a Centrelink benefit.
• Ensure any remaining investments are passed to your spouse or estate.
• Use Member Investment Choice.

*Conditions apply, please contact us.

How much can I be paid as an Allocated Pension?

Your annual Allocated Pension amount is calculated using your account balance and a factor determined by your age.

The table below outlines the new pension factors.

Example:

Steve is age 72 and has an account balance of $250,000. Steve's pension divisor is 5% because of his age. To find out the minimum pension Steve must receive this year, simply divide his account balance by the factor.

250,000 x 5% = $12,500.

If Steve wants to receive more pension this year, he simply needs to advise RBF of the annual amount he would like to receive. Alternatively, Steve could continue to receive the minimum amount and withdraw additional funds throughout the year if needed.

Next financial year a new minimum will be calculated using the factor for a 73 year old and the account balance at that time.

At the beginning of each financial year RBF will recalculate the amount you are paid as an Allocated Pension.

When will RBF pay my Allocated Pension?

You can choose when RBF will pay your Allocated Pension. Your pension will be paid into your bank, building society or credit union account, wherever you live. RBF will pay you pension:

• Fortnightly
• Monthly
• Quarterly
• Half-yearly
• Annually

If you do not notify RBF how often to pay your pension, it will be paid fortnightly.

You must receive at least one Allocated Pension payment every financial year between 1 July and 30 June while your Allocated Pension account is open. You must be paid a minimum amount each year.

How long will my Allocated Pension last?

How long your Allocated Pension will last depends on:

• how much you invest in an Allocated Pension;
• the returns on your investment;
• how much you are paid each year as a pension; and
• how much you withdraw from your account in Lump Sum amounts.

How much pension you choose to receive, your investment returns and any Lump Sum withdrawals will affect how long your Allocated Pension will last. During any single financial year you must be paid the minimum Allocated Pension allowed by Commonwealth legislation.

You can make Lump Sum withdrawals from your account.

If I take an Allocated Pension can I be paid a Centrelink benefit?

An Allocated Pension is a 'Centrelink friendly' option. You will only be entitled to receive a Centrelink benefit if your assets and your income are below a certain level. If you purchase an Allocated Pension, Centrelink will, for income test purposes, allow you a deduction based on the purchase price of the pension. For further information, please contact Centrelink Financial Information Services on 132 300. Centrelink provides this service free of charge.

What tax will I pay on my Allocated Pension payments?

How much tax you pay from your Allocated Pension will depend on your age and the amount in each of the tax components that make up your account balance.

Tax will be payable according to the table below:

Can my partner take an RBF Allocated Pension?

If your partner opens a spouse account and contributions are paid into this account, your spouse can purchase an Allocated Pension.

If your partner has an Allocated Pension you will each be able to access the other benefits available through having an Allocated Pension.

How do I start an Allocated Pension?

Please complete the Allocated Pension form and send it to RBF or contact us.